SENATE, No. 3795

STATE OF NEW JERSEY 218th LEGISLATURE

INTRODUCED MAY 20, 2019

Sponsored by: Senator DECLAN J. O'SCANLON, JR. District 13 (Monmouth)

SYNOPSIS Revises requirements to authorize and access medical ; establishes Cannabis Regulatory Commission; revises permit requirements for alternative treatment centers; establishes additional legal protections for patients and caregivers; and establishes home grow pilot program.

CURRENT VERSION OF TEXT As introduced.

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1 AN ACT concerning , revising various parts of the 2 statutory law, and supplementing P.L.2009, c.307. 3 4 BE IT ENACTED by the Senate and General Assembly of the State 5 of New Jersey: 6 7 1. Section 1 of P.L.2009, c.307 (C.24:6I-1) is amended to read 8 as follows: 9 1. This act shall be known and may be cited as the ["New 10 Jersey] “Jake Honig Compassionate Use Medical [Marijuana] 11 ." 12 (cf: P.L.2009, c.307, s.1) 13 14 2. Section 2 of P.L.2009, c.307 (C.24:6I-2) is amended to read 15 as follows: 16 2. The Legislature finds and declares that: 17 a. Modern medical research has discovered a beneficial use for 18 [marijuana] cannabis in treating or alleviating the pain or other 19 symptoms associated with certain [debilitating] medical conditions, 20 as found by the National Academy of Sciences' Institute of 21 Medicine in March 1999 [;] . 22 b. According to the U.S. Sentencing Commission and the 23 Federal Bureau of Investigation, 99 out of every 100 [marijuana] 24 cannabis arrests in the country are made under state law, rather than 25 under federal law. Consequently, changing state law will have the 26 practical effect of protecting from arrest the vast majority of 27 seriously ill people who have a medical need to use [marijuana] 28 cannabis [;] . 29 c. Although federal law currently prohibits the use of 30 [marijuana] cannabis, the laws of Alaska, Arkansas, California, 31 Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, 32 Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, 33 New Hampshire, New Mexico, New York, North Dakota, Ohio, 34 Oregon, Pennsylvania, Rhode Island, Vermont, [and] Washington, 35 West Virginia, and the District of Columbia permit the use of 36 [marijuana] cannabis for medical purposes, and in Arizona doctors 37 are permitted to prescribe [marijuana] cannabis. New Jersey joins 38 this effort for the health and welfare of its citizens [;] . 39 d. States are not required to enforce federal law or prosecute 40 people for engaging in activities prohibited by federal law; 41 therefore, compliance with this act does not put the State of New 42 Jersey in violation of federal law [; and] . 43 e. Compassion dictates that a distinction be made between 44 medical and non-medical uses of [marijuana] cannabis. Hence, the

EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law.

Matter underlined thus is new matter.

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1 purpose of this act is to protect from arrest, prosecution, property 2 forfeiture, and criminal and other penalties, those patients who use 3 [marijuana] cannabis to alleviate suffering from [debilitating] 4 qualifying medical conditions, as well as their [physicians] health 5 care practitioners, [primary] designated caregivers, institutional 6 caregivers, and those who are authorized to produce [marijuana] 7 cannabis for medical purposes. 8 (cf: P.L.2009, c.307, s.2) 9 10 3. Section 3 of P.L.2009, c.307 (C.24:6I-3) is amended to read 11 as follows: 12 3. As used in [this act] P.L.2009, c.307 (C.24:6I-1 et al.) [,] 13 and P.L.2015, c.158 (C.18A:40-12.22 et al.): 14 “Academic medical center” means an entity located in New 15 Jersey that, on the effective date of P.L. , c. (C. ) (pending 16 before the Legislature as this bill), has an addiction medicine 17 faculty practice; has a pain management faculty practice; has 18 graduate medical training programs accredited by the Accreditation 19 Council for Graduate Medical Education or the American 20 Osteopathic Association in primary care and medical specialties; is 21 the principal teaching affiliate of a medical school based in the 22 State; and has the ability to conduct research related to medical 23 cannabis. If the entity is part of a system of health care facilities, 24 the entity shall not qualify as an academic medical center unless the 25 health care system is principally located within the State. 26 “Adverse employment action” means refusing to hire or employ 27 an individual, barring or discharging an individual from 28 employment, requiring an individual to retire from employment, or 29 discriminating against an individual in compensation or in any 30 terms, conditions, or privileges of employment. 31 ["Bona fide physician-patient relationship" means a relationship 32 in which the physician has ongoing responsibility for the 33 assessment, care, and treatment of a patient's debilitating medical 34 condition.] 35 “Cannabis” has the meaning given to “marihuana” in section 2 of 36 the “New Jersey Controlled Dangerous Substances Act,” P.L.1970, 37 c.226 (C.24:21-2). 38 ["Certification" means a statement signed by a physician with 39 whom a qualifying patient has a bona fide physician-patient 40 relationship, which attests to the physician's authorization for the 41 patient to apply for registration for the medical use of marijuana.] 42 “Clinical registrant” means an entity that has a written 43 contractual relationship with an academic medical center in the 44 region in which it has its principal place of business, which includes 45 provisions whereby the parties will engage in clinical research 46 related to the use of medical cannabis and the academic medical 47 center or its affiliate will provide advice to the entity regarding

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1 patient health and safety, medical applications, and dispensing and 2 managing controlled dangerous substances, among other areas. 3 “Commission” means the Cannabis Regulatory Commission 4 established pursuant to section 31 of P.L. , c. (C. ) (pending 5 before the Legislature as this bill). 6 "Commissioner" means the Commissioner of Health. 7 ["Debilitating medical condition" means: 8 (1) one of the following conditions, if resistant to conventional 9 medical therapy: seizure disorder, including ; intractable 10 skeletal muscular spasticity; post-traumatic stress disorder; or 11 glaucoma; 12 (2) one of the following conditions, if severe or chronic pain, 13 severe nausea or vomiting, cachexia, or wasting syndrome results 14 from the condition or treatment thereof: positive status for human 15 immunodeficiency virus; acquired immune deficiency syndrome; or 16 cancer; 17 (3) amyotrophic lateral sclerosis, , terminal 18 cancer, muscular dystrophy, or inflammatory bowel disease, 19 including Crohn's disease; 20 (4) terminal illness, if the physician has determined a prognosis 21 of less than 12 months of life; or 22 (5) any other medical condition or its treatment that is approved 23 by the department by regulation.] 24 “Common ownership or control” means: 25 (1) between two for-profit entities, the same individuals or 26 entities own and control more than 50 percent of both entities; 27 (2) between a nonprofit entity and a for-profit entity, a majority 28 of the directors, trustees, or members of the governing body of the 29 nonprofit entity directly or indirectly own and control more than 50 30 percent of the for-profit entity; and 31 (3) between two nonprofit entities, the same directors, trustees, 32 or governing body members comprise a majority of the voting 33 directors, trustees, or governing body members of both nonprofits. 34 "Department" means the Department of Health. 35 "Designated caregiver" means a resident of the State who: 36 (1) is at least 18 years old; 37 (2) has agreed to assist with a registered qualifying patient's 38 medical use of cannabis, is not currently serving as designated 39 caregiver for more than one other qualifying patient, and is not the 40 qualifying patient's health care practitioner; 41 (3) subject to the provisions of paragraph (2) of subsection c. of 42 section 4 of P.L.2009, c.307 (C.24:6I-4), has never been convicted 43 of possession or sale of a controlled dangerous substance, unless 44 such conviction occurred after the effective date of P.L.2009, c.307 45 (C.24:6I-1 et al.) and was for a violation of federal law related to 46 possession or sale of cannabis that is authorized under P.L.2009, 47 c.307 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.);

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1 (4) has registered with the commission pursuant to section 4 of 2 P.L.2009, c.307 (C.24:6I-4), and, except in the case of a designated 3 caregiver who is an immediate family member of the patient, has 4 satisfied the criminal history record background check requirement 5 of section 4 of P.L.2009, c.307 (C.24:6I-4); and 6 (5) has been designated as designated caregiver by the patient 7 when registering or renewing a registration with the commission or 8 in other written notification to the commission. 9 “Dispense” means the furnishing of medical cannabis, including 10 medical cannabis products, to a registered qualifying patient, 11 designated caregiver, or institutional caregiver by a medical 12 cannabis dispensary or clinical registrant pursuant to written 13 instructions issued by a health care practitioner pursuant to the 14 requirements of P.L.2009, c.307 (C.24:6I-1 et al.). The term shall 15 include delivery of medical cannabis by a medical cannabis 16 dispensary or clinical registrant to a registered qualifying patient, 17 designated caregiver, or institutional caregiver. 18 “Executive director” means the executive director of the 19 Cannabis Regulatory Commission established pursuant to section 20 31 of P.L. , c. (C. ) (pending before the Legislature as this 21 bill). 22 “Health care facility” means a general acute care hospital, 23 nursing home, long term care facility, hospice care facility, group 24 home, facility that provides services to persons with developmental 25 disabilities, behavioral health care facility, or rehabilitation center. 26 "Health care practitioner" means a physician, advanced practice 27 nurse, or physician assistant licensed or certified pursuant to Title 28 45 of the Revised Statutes who: 29 (1) possesses active registrations to prescribe controlled 30 dangerous substances issued by the United States Drug 31 Enforcement Administration and the Division of Consumer Affairs 32 in the Department of Law and Public Safety; and 33 (2) is the health care practitioner responsible for the ongoing 34 treatment of a patient's qualifying medical condition, the symptoms 35 of that condition, or the symptoms associated with the treatment of 36 that condition, provided, however, that the ongoing treatment shall 37 not be limited to the provision of authorization for a patient to use 38 medical cannabis or consultation solely for that purpose. 39 “Immediate family” means the spouse, domestic partner, civil 40 union partner, child, sibling, or parent of an individual, and shall 41 include the siblings, parents, and children of the individual’s 42 spouse, domestic partner, or civil union partner, and the parents, 43 spouses, domestic partners, or civil union partners of the 44 individual’s parents, siblings, and children. 45 “Institutional caregiver” means a resident of the State who: 46 (1) is at least 18 years old; 47 (2) is an employee of a health care facility;

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1 (3) is authorized, within the scope of the individual’s 2 professional duties, to possess and administer controlled dangerous 3 substances in connection with the care and treatment of patients and 4 residents pursuant to applicable State and federal laws; 5 (4) is authorized by the health care facility employing the person 6 to assist registered qualifying patients who are patients or residents 7 of the facility with the medical use of cannabis, including, but not 8 limited to, obtaining medical cannabis for registered qualifying 9 patients and assisting registered qualifying patients with the 10 administration of medical cannabis; 11 (5) subject to the provisions of paragraph (2) of subsection c. of 12 section 4 of P.L.2009, c.307 (C.24:6I-4), has never been convicted 13 of possession or sale of a controlled dangerous substance, unless 14 such conviction occurred after the effective date of P.L.2009, c.307 15 (C.24:6I-1 et al.) and was for a violation of federal law related to 16 possession or sale of cannabis that is authorized under P.L.2009, 17 c.307 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.); 18 and 19 (6) has registered with the commission pursuant to section 4 of 20 P.L.2009, c.307 (C.24:6I-4). 21 “Integrated curriculum” means an academic, clinical, or research 22 program at an institution of higher education that is coordinated 23 with a medical cannabis cultivator, medical cannabis manufacturer, 24 or medical cannabis dispensary to apply theoretical principles, 25 practical experience, or both involving the cultivation, 26 manufacturing, dispensing, or medical use of cannabis to a specific 27 area of study, including, but not limited to, agriculture, biology, 28 business, chemistry, culinary studies, ecology, environmental 29 studies, health care, horticulture, technology, or any other 30 appropriate area of study or combined areas of study. Integrated 31 curricula shall be subject to approval by the commission and the 32 Office of the Secretary of Higher Education. 33 “Integrated curriculum permit” or “IC permit” means a permit 34 issued to a medical cannabis cultivator, medical cannabis 35 manufacturer, or medical cannabis dispensary that includes an 36 integrated curriculum approved by the commission and the Office 37 of the Secretary of Higher Education. 38 ["Marijuana" has the meaning given in section 2 of the "New 39 Jersey Controlled Dangerous Substances Act," P.L.1970, c.226 40 (C.24:21-2).] 41 "Medical [marijuana] cannabis alternative treatment center" or 42 "alternative treatment center" means an organization [approved] 43 issued a permit by the [department] commission to [perform 44 activities necessary to provide registered qualifying patients with 45 usable marijuana and related paraphernalia in accordance with the 46 provisions of this act] operate as a medical cannabis cultivator, 47 medical cannabis manufacturer, medical cannabis dispensary, or

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1 clinical registrant. This term shall include the organization's 2 officers, directors, board members, and employees. 3 “Medical cannabis cultivator” means an organization holding a 4 permit issued by the commission that authorizes the organization to: 5 possess and cultivate cannabis and deliver, transfer, transport, 6 distribute, supply, and sell medical cannabis and related supplies to 7 other medical cannabis cultivators and to medical cannabis 8 manufacturers, clinical registrants, and medical cannabis 9 dispensaries, as well as to plant, cultivate, grow, and harvest 10 medical cannabis for research purposes. A medical cannabis 11 cultivator permit shall not authorize the permit holder to 12 manufacture, produce, or otherwise create medical cannabis 13 products, or to deliver, transfer, transport, distribute, supply, sell, or 14 dispense medical cannabis, medical cannabis products, 15 paraphernalia, or related supplies to qualifying patients, designated 16 caregivers, or institutional caregivers. 17 “Medical cannabis dispensary” means an organization issued a 18 permit by the commission that authorizes the organization to: 19 purchase or obtain medical cannabis and related supplies from 20 medical cannabis cultivators; purchase or obtain medical cannabis 21 products and related supplies from medical cannabis manufacturers; 22 purchase or obtain medical cannabis, medical cannabis products, 23 and related supplies and paraphernalia from clinical registrants and 24 from other medical cannabis dispensaries; deliver, transfer, 25 transport, distribute, supply, and sell medical cannabis and medical 26 cannabis products to other medical cannabis dispensaries; and 27 possess, display, deliver, transfer, transport, distribute, supply, sell, 28 and dispense medical cannabis, medical cannabis products, 29 paraphernalia, and related supplies to qualifying patients, 30 designated caregivers, and institutional caregivers. A medical 31 cannabis dispensary permit shall not authorize the permit holder to 32 cultivate medical cannabis or to produce, manufacture, or otherwise 33 create medical cannabis products. 34 “Medical cannabis manufacturer” means an organization issued a 35 permit by the commission that authorizes the organization to: 36 purchase or obtain medical cannabis and related supplies from a 37 medical cannabis cultivator or clinical registrant; purchase or obtain 38 medical cannabis products from another medical cannabis 39 manufacturer or from a clinical registrant; produce, manufacture, or 40 otherwise create medical cannabis products; and possess, deliver, 41 transfer, transport, distribute, supply, and sell medical cannabis 42 products and related supplies to other medical cannabis 43 manufacturers and to medical cannabis dispensaries, and clinical 44 registrants. A medical cannabis manufacturer permit shall not 45 authorize the permit holder to cultivate medical cannabis or to 46 deliver, transfer, transport, distribute, supply, sell, or dispense 47 medical cannabis, medical cannabis products, paraphernalia, or

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1 related supplies to qualifying patients, designated caregivers, or 2 institutional caregivers. 3 "Medical use of [marijuana] cannabis" means the acquisition, 4 possession, transport, or use of [marijuana] cannabis or 5 paraphernalia by a registered qualifying patient as authorized by 6 [this act] P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 7 (C.18A:40-12.22 et al.). 8 "Minor" means a person who is under 18 years of age and who 9 has not been married or previously declared by a court or an 10 administrative agency to be emancipated. 11 "Paraphernalia" has the meaning given in N.J.S.2C:36-1. 12 “Pediatric specialist” means a physician who is a board-certified 13 pediatrician or pediatric specialist, or an advanced practice nurse or 14 physician assistant who is certified as a pediatric specialist by an 15 appropriate professional certification or licensing entity. 16 ["Physician" means a person licensed to practice medicine and 17 surgery pursuant to Title 45 of the Revised Statutes with whom the 18 patient has a bona fide physician-patient relationship and who is the 19 primary care physician, hospice physician, or physician responsible 20 for the ongoing treatment of a patient's debilitating medical 21 condition, provided, however, that the ongoing treatment shall not 22 be limited to the provision of authorization for a patient to use 23 medical marijuana or consultation solely for that purpose. 24 "Primary caregiver" or "caregiver" means a resident of the State 25 who: 26 a. is at least 18 years old; 27 b. has agreed to assist with a registered qualifying patient's 28 medical use of marijuana, is not currently serving as primary 29 caregiver for another qualifying patient, and is not the qualifying 30 patient's physician; 31 c. has never been convicted of possession or sale of a 32 controlled dangerous substance, unless such conviction occurred 33 after the effective date of this act and was for a violation of federal 34 law related to possession or sale of marijuana that is authorized 35 under this act; 36 d. has registered with the department pursuant to section 5 of 37 this act, and has satisfied the criminal history record background 38 check requirement of section 5 of this act; and 39 e. has been designated as primary caregiver on the qualifying 40 patient's application or renewal for a registry identification card or 41 in other written notification to the department.] 42 “Primary care” means the practice of family medicine, general 43 internal medicine, general pediatrics, general obstetrics, or 44 gynecology. 45 “Qualifying medical condition” means seizure disorder, 46 including epilepsy; intractable skeletal muscular spasticity; post- 47 traumatic stress disorder; glaucoma; positive status for human

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1 immunodeficiency virus; acquired immune deficiency syndrome; 2 cancer; amyotrophic lateral sclerosis; multiple sclerosis; muscular 3 dystrophy; inflammatory bowel disease, including Crohn's disease; 4 terminal illness, if the patient has a prognosis of less than 12 5 months of life; anxiety; ; Tourette’s syndrome; 6 dysmenorrhea; chronic pain; ; or any other 7 medical condition or its treatment that is approved by the 8 commission. 9 "Qualifying patient" or "patient" means a resident of the State 10 who has been [provided with a certification] authorized for the 11 medical use of cannabis by a [physician] health care practitioner 12 [pursuant to a bona fide physician-patient relationship]. 13 ["Registry identification card"] “Registration with the 14 commission” means [a document issued by the department that 15 identifies] a person has met the qualification requirements for, and 16 has been registered by the commission as, a registered qualifying 17 patient [or primary], designated caregiver, or institutional 18 caregiver. The commission shall establish appropriate means for 19 health care practitioners, health care facilities, medical cannabis 20 dispensaries, clinical registrants, law enforcement, schools, 21 facilities providing behavioral health services or services for 22 persons with developmental disabilities, and other appropriate 23 entities to verify an individual’s status as a registrant with the 24 commission. 25 “Significantly involved person” means a person or entity who 26 holds at least a five percent investment interest in an entity issued, 27 or applying for a permit to operate as, a medical cannabis cultivator, 28 medical cannabis manufacturer, medical cannabis dispensary, or 29 clinical registrant, or who is a decision making member of a group 30 that holds at least a 20 percent investment interest in an entity 31 issued, or applying for a permit to operate as, a medical cannabis 32 cultivator, medical cannabis manufacturer, medical cannabis 33 dispensary, or clinical registrant, in which no member of that group 34 holds more than a five percent interest in the total group investment 35 interest, and the person or entity makes controlling decisions 36 regarding the operations of the entity issued, or applying for a 37 permit to operate as, a medical cannabis cultivator, medical 38 cannabis manufacturer, medical cannabis dispensary, or clinical 39 registrant. 40 "Terminally ill" means having an illness or condition with a 41 prognosis of less than 12 months of life. 42 "Usable [marijuana] cannabis" means the dried leaves and 43 flowers of [marijuana] cannabis, and any mixture or preparation 44 thereof, and does not include the seeds, stems, stalks, or roots of the 45 plant. 46 (cf: P.L.2016, c.53, s.1)

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1 4. Section 4 of P.L.2009, c.307 (C.24:6I-4) is amended to read 2 as follows: 3 4. a. The [department] commission shall establish a registry 4 of qualifying patients and their [primary] designated caregivers [, 5 and shall issue a registry identification card, which shall be valid 6 for two years, to a qualifying patient and primary caregiver, if 7 applicable, who submits] and shall establish a means of identifying 8 and verifying the registration status of patients and designated 9 caregivers who are registered with the commission. Registration 10 with the commission shall be valid for two years. A patient or 11 designated caregiver shall be registered with the commission upon 12 submitting the following, in accordance with regulations adopted by 13 the [department] commission: 14 (1) [a certification that meets the requirements of section 5 of 15 this act] documentation of a health care practitioner’s authorization 16 for the patient for the medical use of cannabis; 17 (2) an application or renewal fee, which may be based on a 18 sliding scale as determined by the [commissioner] executive 19 director; 20 (3) the name, address, and date of birth of the patient and each 21 designated caregiver, as applicable; and 22 (4) the name, address, and telephone number of the patient's 23 [physician] health care practitioner. 24 Each qualifying patient may concurrently have up to two 25 designated caregivers. A qualifying patient may petition the 26 commission for approval to concurrently have more than two 27 designated caregivers, which petition shall be approved if the 28 commission finds that allowing the patient additional designated 29 caregivers is necessary to meet the patient’s treatment needs and is 30 consistent with the provisions of P.L.2009, c.307 (C.24:6I-1 et al.). 31 The commission shall establish a registry of institutional 32 caregivers and shall establish a means of identifying and verifying 33 the registration status of institutional caregivers who are registered 34 with the commission. Registration with the commission shall be 35 valid for one year. An institutional caregiver shall be registered 36 with the commission upon submitting the name, address, and 37 telephone number of the institutional caregiver and of the health 38 care facility at which the individual will be serving as institutional 39 caregiver and a certification that meets the requirements of 40 subsection h. of this section. The application or renewal fee for the 41 institutional caregiver shall be paid by the health care facility at 42 which the institutional caregiver will be serving as institutional 43 caregiver. An institutional caregiver shall not be limited in the 44 number of qualifying patients for whom the institutional caregiver 45 may serve as institutional caregiver at one time, provided that each 46 qualifying patient served by the institutional caregiver is a current 47 patient or resident at the health care facility at which the

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1 institutional caregiver is authorized to serve as institutional 2 caregiver, and the number of qualifying patients served by the 3 institutional caregiver is commensurate with the institutional 4 caregiver’s ability to fully meet the treatment and related needs of 5 each qualifying patient and attend to the institutional caregiver’s 6 other professional duties at the health care facility without 7 jeopardizing the health or safety of any patient or resident at the 8 facility. 9 b. Before [issuing a registry identification card] registering an 10 individual, the [department] commission shall verify the 11 information contained in the application or renewal form submitted 12 pursuant to this section. In the case of a [primary] designated or 13 institutional caregiver, the [department] commission shall 14 provisionally approve an application pending the results of a 15 criminal history record background check, if the caregiver 16 otherwise meets the requirements of [this act] P.L.2009, c.307 17 (C.24:6I-1 et al.). The [department] commission shall approve or 18 deny an application or renewal and complete the registration 19 process for successful applicants within 30 days of receipt of the 20 completed application or renewal [, and shall issue a registry 21 identification card within five days of approving the application or 22 renewal]. The [department] commission may deny an application 23 or renewal only if the applicant fails to provide the information 24 required pursuant to this section, or if the [department] commission 25 determines that the information was incorrect or falsified or does 26 not meet the requirements of [this act] P.L.2009, c.307 (C.24:6I-1 27 et al.). Denial of an application shall be a final agency decision, 28 subject to review by the Superior Court, Appellate Division. 29 c. (1) The [commissioner] executive director shall require 30 each applicant seeking to serve as a [primary] designated or 31 institutional caregiver to undergo a criminal history record 32 background check; except that no criminal history record 33 background check shall be required for an applicant seeking to 34 serve as a designated caregiver if the applicant is an immediate 35 family member of the patient, and no criminal history record 36 background check shall be required for an applicant seeking to 37 serve as an institutional caregiver if the applicant completed a 38 criminal history record background check as a condition of 39 professional licensure or certification. The [commissioner] 40 executive director is authorized to exchange fingerprint data with 41 and receive criminal history record background information from 42 the Division of State Police and the Federal Bureau of Investigation 43 consistent with the provisions of applicable federal and State laws, 44 rules, and regulations. The Division of State Police shall forward 45 criminal history record background information to the 46 [commissioner] executive director in a timely manner when 47 requested pursuant to the provisions of this section.

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1 An applicant seeking to serve as a [primary] designated or 2 institutional caregiver who is required to complete a criminal 3 history record background check pursuant to this section shall 4 submit to being fingerprinted in accordance with applicable State 5 and federal laws, rules, and regulations. No check of criminal 6 history record background information shall be performed pursuant 7 to this section unless the applicant has furnished [his] the 8 applicant’s written consent to that check. An applicant who is 9 required to complete a criminal history record background check 10 pursuant to this section who refuses to consent to, or cooperate in, 11 the securing of a check of criminal history record background 12 information shall not be considered for inclusion in the registry as a 13 [primary] designated or institutional caregiver [or issuance of an 14 identification card]. An applicant shall bear the cost for the 15 criminal history record background check, including all costs of 16 administering and processing the check. 17 (2) The [commissioner] executive director shall not approve an 18 applicant seeking to serve as a [primary] designated or institutional 19 caregiver who is required to complete a criminal history record 20 background check pursuant to this section if the criminal history 21 record background information of the applicant reveals a 22 disqualifying conviction. For the purposes of this section, a 23 disqualifying conviction shall mean a conviction of a crime 24 involving any controlled dangerous substance or controlled 25 substance analog as set forth in chapter 35 of Title 2C of the New 26 Jersey Statutes except paragraph (4) of subsection a. of 27 N.J.S.2C:35-10, or any similar law of the United States or of any 28 other state. 29 (3) Upon receipt of the criminal history record background 30 information from the Division of State Police and the Federal 31 Bureau of Investigation, the [commissioner] executive director 32 shall provide written notification to the applicant of [his] the 33 applicant’s qualification or disqualification for serving as a 34 [primary] designated or institutional caregiver. 35 If the applicant is disqualified because of a disqualifying 36 conviction pursuant to the provisions of this section, the conviction 37 that constitutes the basis for the disqualification shall be identified 38 in the written notice. 39 (4) The Division of State Police shall promptly notify the 40 [commissioner] executive director in the event that an individual 41 who was the subject of a criminal history record background check 42 conducted pursuant to this section is convicted of a crime or offense 43 in this State after the date the background check was performed. 44 Upon receipt of that notification, the [commissioner] executive 45 director shall make a determination regarding the continued 46 eligibility of the applicant to serve as a [primary] designated or 47 institutional caregiver.

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1 (5) Notwithstanding the provisions of paragraph (2) of this 2 subsection [b. of this section] to the contrary, no applicant shall be 3 disqualified from serving as a [registered primary] designated or 4 institutional caregiver on the basis of any conviction disclosed by a 5 criminal history record background check conducted pursuant to 6 this section if the individual has affirmatively demonstrated to the 7 [commissioner] executive director clear and convincing evidence 8 of rehabilitation. In determining whether clear and convincing 9 evidence of rehabilitation has been demonstrated, the following 10 factors shall be considered: 11 (a) the nature and responsibility of the position which the 12 convicted individual would hold, has held, or currently holds; 13 (b) the nature and seriousness of the crime or offense; 14 (c) the circumstances under which the crime or offense 15 occurred; 16 (d) the date of the crime or offense; 17 (e) the age of the individual when the crime or offense was 18 committed; 19 (f) whether the crime or offense was an isolated or repeated 20 incident; 21 (g) any social conditions which may have contributed to the 22 commission of the crime or offense; and 23 (h) any evidence of rehabilitation, including good conduct in 24 prison or in the community, counseling or psychiatric treatment 25 received, acquisition of additional academic or vocational 26 schooling, successful participation in correctional work-release 27 programs, or the recommendation of those who have had the 28 individual under their supervision. 29 d. [A registry identification card] A verification of registration 30 issued by the commission shall contain the following information: 31 (1) (a) in the case of a patient or designated caregiver 32 registration, the name, address, and date of birth of the patient and 33 [primary] each designated caregiver, if applicable; and 34 (b) in the case of an institutional caregiver, the caregiver’s name 35 and date of birth and the name and address of the health care 36 facility at which the caregiver is serving as institutional caregiver; 37 (2) the expiration date of the [registry identification card] 38 registration; 39 (3) photo identification of the [cardholder] registrant; and 40 (4) such other information that the [department] commission 41 may specify by regulation. 42 e. (1) A patient who has been [issued a registry identification 43 card] registered by the commission shall notify the [department] 44 commission of any change in the patient's name, address, or 45 [physician] health care practitioner or change in status of the 46 patient's [debilitating] qualifying medical condition, within 10 days

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1 of such change, or the [registry identification card] patient’s 2 registration shall be deemed null and void. 3 (2) A [primary] designated caregiver who has been [issued a 4 registry identification card] registered by the commission shall 5 notify the [department] commission of any change in the 6 caregiver's name or address within 10 days of such change, or the 7 [registry identification card] caregiver’s registration shall be 8 deemed null and void. 9 (3) An institutional caregiver who has been registered by the 10 commission shall notify the commission of any change in the 11 caregiver’s name, address, employment by a health care facility at 12 which the caregiver is registered to serve as institutional caregiver, 13 or authorization from the health care facility to assist qualifying 14 patients with the medical use of cannabis, within 10 days of such 15 change, or the caregiver’s registration shall be deemed null and 16 void and the individual shall be deemed ineligible to serve as an 17 institutional caregiver for a period of not less than one year. 18 f. The [department] commission shall maintain a confidential 19 list of the persons [to whom it has issued registry identification 20 cards] registered with the commission. Individual names and other 21 identifying information on the list, and information contained in any 22 application form, or accompanying or supporting document shall be 23 confidential, and shall not be considered a public record under 24 P.L.1963, c.73 (C.47:1A-1 et seq.) [or] , P.L.2001, c.404 (C.47:1A- 25 5 et al.), or the common law concerning access to government 26 records, and shall not be disclosed except to: 27 (1) authorized employees of the [department] commission and 28 the Division of Consumer Affairs in the Department of Law and 29 Public Safety as necessary to perform official duties of the 30 [department] commission and the division, as applicable; and 31 (2) authorized employees of State or local law enforcement 32 agencies, only as necessary to verify that a person who is engaged 33 in the suspected or alleged medical use of [marijuana] cannabis is 34 lawfully [in possession of a registry identification card] registered 35 with the commission. 36 g. Applying for [or receiving a registry card] registration or 37 being registered by the commission does not constitute a waiver of 38 the qualifying patient's [patient-physician] practitioner-patient 39 privilege. 40 h. An applicant seeking to serve as an institutional caregiver 41 shall submit with the application a certification executed by the 42 director or administrator of the health care facility employing the 43 applicant attesting that: 44 (1) the facility has authorized the applicant to assist registered 45 qualifying patients at the facility with the medical use of cannabis, 46 including obtaining medical cannabis from a medical cannabis

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1 dispensary, accepting deliveries of medical cannabis from a medical 2 cannabis courier, and assisting registered qualifying patients with 3 the administration of medical cannabis; 4 (2) the facility has established protocols and procedures and 5 implemented security measures to ensure that any medical cannabis 6 obtained by an institutional caregiver that is transported by the 7 caregiver to the facility is transported in a safe and secure manner 8 that prevents theft, diversion, adulteration, and access by 9 unauthorized individuals, and that any medical cannabis present at 10 the facility is stored in a safe and secure manner that prevents theft, 11 diversion, adulteration, and access by unauthorized individuals; 12 (3) the facility has established protocols and procedures to 13 review the medications and treatment plans of registered qualifying 14 patients at the facility to ensure that the patient’s medical use of 15 cannabis will not result in adverse drug interactions, side effects, or 16 other complications that could significantly jeopardize the health or 17 safety of the patient; 18 (4) the facility will not charge a registered qualifying patient for 19 medical cannabis obtained on the registered qualifying patient’s 20 behalf in an amount that exceeds the actual cost of the medical 21 cannabis, plus any reasonable costs incurred in acquiring the 22 medical cannabis; 23 (5) the facility has established protocols and procedures 24 concerning whether, and to what extent, designated caregivers are 25 permitted to assist registered qualifying patients with the medical 26 use of cannabis while at the facility; and 27 (6) the facility will promptly notify the executive director in the 28 event that: 29 (a) an institutional caregiver registered with the commission 30 pursuant to this section ceases to be employed by the facility or 31 ceases to be authorized by the facility to assist registered qualifying 32 patients with the medical use of cannabis, in which case, upon 33 receipt of the notification, the executive director shall immediately 34 revoke the institutional caregiver’s registration; or 35 (b) an institutional caregiver registered with the commission 36 pursuant to this section, who completed a criminal history record 37 background check as a condition of professional licensure or 38 certification, is convicted of a crime or offense in this State after the 39 date the criminal history background check was performed, in 40 which case, upon receipt of that notification, the executive director 41 shall make a determination regarding the continued eligibility of the 42 applicant to serve as an institutional caregiver. 43 Nothing in this section shall be deemed to require any facility to 44 authorize any employee of the facility to serve as an institutional 45 caregiver or to issue a certification that meets the requirements of 46 this subsection. 47 (cf: P.L.2009, c.307, s.4)

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1 5. (New section) a. A health care practitioner shall not be 2 required to be listed publicly in any medical cannabis practitioner 3 registry as a condition of authorizing patients for the medical use of 4 cannabis. 5 b. When authorizing a qualifying patient who is a minor for the 6 medical use of cannabis, if the treating health care practitioner is 7 not a pediatric specialist, the treating health care practitioner shall, 8 prior to authorizing the patient for the medical use of cannabis, 9 obtain written confirmation from a health care practitioner who is a 10 pediatric specialist establishing, in that health care practitioner’s 11 professional opinion, and following an examination of the minor 12 patient or review of the minor patient’s medical record, that the 13 minor patient is likely to receive therapeutic or palliative benefits 14 from the medical use of cannabis to treat or alleviate symptoms 15 associated with the patient’s qualifying medical condition. If the 16 treating health care practitioner is a pediatric specialist, no 17 additional written confirmation from any other health care 18 practitioner shall be required as a condition of authorizing the 19 patient for the medical use of cannabis. 20 c. No authorization for the medical use of cannabis may be 21 issued by a health care practitioner to the practitioner’s own self or 22 to a member of the practitioner’s immediate family. 23 d. The commission shall establish a process to allow medical 24 cannabis to be dispensed to a patient who has been authorized for 25 the medical use of cannabis and who has initiated the process of 26 registering with the commission pursuant to section 4 of P.L.2009, 27 c.307 (C.24:6I-4), but whose registration has not been completed or 28 subject to other final action by the commission. A patient may be 29 dispensed medical cannabis in quantities of up to a two-week 30 supply during the pendency of the patient’s registration, after which 31 time the patient may be dispensed medical cannabis in an amount 32 consistent with the requirements of section 10 of P.L.2009, c.307 33 (C.24:6I-10). The commission shall impose such restrictions on 34 access to medical cannabis pursuant to this subsection as shall be 35 necessary to protect against fraud, abuse, and diversion. 36 37 6. (New section) a. Except as provided in subsection b. of this 38 section, no health care practitioner who has authorized a patient for 39 the medical use of cannabis pursuant to P.L.2009, c.307 (C.24:6I-1 40 et al.) within the past 90 days, and no member of such health care 41 practitioner’s immediate family, shall be an interest holder in, or 42 receive any form of direct or indirect compensation from, any 43 medical cannabis cultivator, medical cannabis manufacturer, 44 medical cannabis dispensary, or clinical registrant. 45 b. Nothing in subsection a. of this section shall be construed to 46 prevent a health care practitioner from serving on the governing 47 board of a medical cannabis cultivator, medical cannabis 48 manufacturer, medical cannabis dispensary, or clinical registrant, or

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1 on the medical advisory board of a medical cannabis cultivator, 2 medical cannabis manufacturer, medical cannabis dispensary, or 3 clinical registrant established pursuant to section 15 of 4 P.L. , c. (C. ) (pending before the Legislature as this bill), 5 or from receiving a reasonable stipend for such service, provided 6 that: 7 (1) the stipend does not exceed the stipend paid to any other 8 member of the governing board or medical advisory board for 9 serving on the board; and 10 (2) the amount of the stipend is not based on patient volumes at 11 any medical cannabis dispensary or clinical registrant or on the 12 number of authorizations for the medical use of cannabis issued by 13 the health care practitioner pursuant to P.L.2009, c.307 (C.24:6I- 14 1 et al.). 15 c. A health care practitioner, or an immediate family member 16 of a health care practitioner, who applies to be an owner, director, 17 officer, or employee of a medical cannabis cultivator, medical 18 cannabis manufacturer, medical cannabis dispensary, or clinical 19 registrant, or who otherwise seeks to be an interest holder in, or 20 receive any form of direct or indirect compensation from, a medical 21 cannabis cultivator, medical cannabis manufacturer, medical 22 cannabis dispensary, or clinical registrant, shall certify that the 23 health care practitioner has not authorized a patient for the medical 24 use of cannabis pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) within 25 the 90 days immediately preceding the date of the application. 26 d. A person who violates subsection a. of this section shall be 27 guilty of a crime of the fourth degree. 28 29 7. (New section) a. An individual who is registered as a 30 qualifying patient in another state or jurisdiction within the United 31 States that authorizes the medical use of cannabis shall be 32 considered a registered qualifying patient for the purposes of 33 P.L.2009, c.307 (C.24:6I-1 et al.) for a period of up to six months, 34 provided that the individual possesses both proof of registration in, 35 and a valid photo identification card issued by, the other state or 36 jurisdiction. During the six month period, the individual shall be 37 authorized to possess and use medical cannabis and engage in such 38 other conduct related to medical cannabis in New Jersey as is 39 consistent with the requirements of P.L.2009, c.307 (C.24:6I-1 et 40 al.) and the laws of the state or jurisdiction in which the patient is 41 registered, except that medical cannabis shall not be dispensed to 42 the individual unless a health care practitioner licensed in New 43 Jersey issues written instructions for the individual that meet the 44 requirements of section 10 of P.L.2009, c.307 (C.24:6I-10). No 45 individual shall be authorized to acquire, possess, use, or engage in 46 other conduct in connection with medical cannabis in New Jersey 47 pursuant to a medical cannabis registration from another State or 48 jurisdiction for more than six months unless the individual registers

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1 with the commission as a qualifying patient pursuant to section 4 of 2 P.L.2009, c.307 (C.24:6I-4). Nothing in this subsection shall be 3 construed to authorize delivery of medical cannabis to any person 4 who is not registered with the commission pursuant to section 4 of 5 P.L.2009, c.307 (C.24:6I-4). 6 b. An individual who is registered as a designated caregiver in 7 another state or jurisdiction within the United States that authorizes 8 the medical use of cannabis shall be considered a designated 9 caregiver for the purposes of P.L.2009, c.307 (C.24:6I-1 et al.) for a 10 period of up to six months, provided that the individual is in 11 possession of both proof of registration in, and a valid photo 12 identification card issued by, the other state or jurisdiction. During 13 the six month period, the individual shall be authorized to assist a 14 registered qualifying patient with the medical use of cannabis and 15 engage in such other conduct in connection with medical cannabis 16 in New Jersey as is consistent with the requirements of P.L.2009, 17 c.307 (C.24:6I-1 et al.) and the laws of the state or jurisdiction in 18 which the caregiver is registered, except that medical cannabis shall 19 not be dispensed to the individual on behalf of a registered 20 qualifying patient unless a health care practitioner licensed in New 21 Jersey issues written instructions for the registered qualifying 22 patient that meet the requirements of section 10 of P.L.2009, c.307 23 (C.24:6I-10). No individual shall be authorized to assist a registered 24 qualifying patient with the medical use of cannabis or engage in 25 other conduct in connection with medical cannabis in New Jersey 26 pursuant to a medical cannabis registration from another State or 27 jurisdiction for more than six months unless the individual registers 28 with the commission as a designated caregiver pursuant to section 4 29 of P.L.2009, c.307 (C.24:6I-4). Nothing in this subsection shall be 30 construed to authorize delivery of medical cannabis to any person 31 who is not registered with the commission pursuant to section 4 of 32 P.L.2009, c.307 (C.24:6I-4). 33 c. The commission shall seek to enter into reciprocity 34 agreements with other states and jurisdictions within the United 35 States that authorize the medical use of cannabis. 36 37 8. Section 6 of P.L.2009, c.307 (C.24:6I-6) is amended to read 38 as follows: 39 6. a. The provisions of N.J.S.2C:35-18 shall apply to any 40 qualifying patient, [primary] designated caregiver, [alternative 41 treatment center, physician] institutional caregiver, health care 42 facility, medical cannabis cultivator, medical cannabis 43 manufacturer, medical cannabis dispensary, health care practitioner, 44 academic medical center, clinical registrant, testing laboratory, or 45 any other person acting in accordance with the provisions of 46 P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40- 47 12.22 et al.).

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1 b. A qualifying patient, [primary] designated caregiver, 2 [alternative treatment center, physician] institutional caregiver, 3 health care facility, medical cannabis cultivator, medical cannabis 4 manufacturer, medical cannabis dispensary, health care practitioner, 5 academic medical center, clinical registrant, testing laboratory, or 6 any other person acting in accordance with the provisions of 7 P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40- 8 12.22 et al.) shall not be subject to any civil or administrative 9 penalty, or denied any right or privilege, including, but not limited 10 to, civil penalty or disciplinary action by a professional licensing 11 board, related to the medical use of [marijuana] cannabis as 12 authorized under P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2015, 13 c.158 (C.18A:40-12.22 et al.). 14 c. [Possession of] Registration with the commission, or 15 application for registration by the commission, [a registry 16 identification card] shall not alone constitute probable cause to 17 search the person or the property of the [person possessing or 18 applying for the registry identification card] registrant or applicant, 19 or otherwise subject the person or [his] the person’s property to 20 inspection by any governmental agency. 21 d. The provisions of section 2 of P.L.1939, c.248 (C.26:2-82), 22 relating to destruction of [marijuana] cannabis determined to exist 23 by the [department] commission, shall not apply if a qualifying 24 patient [or primary], designated caregiver, or institutional caregiver 25 [has in his possession a registry identification card] is registered 26 with the commission and is in possession of no more than the 27 maximum amount of usable [marijuana] cannabis that may be 28 obtained in accordance with section 10 of P.L.2009, c.307 (C.24:6I- 29 10). 30 e. No person shall be subject to arrest or prosecution for 31 constructive possession, conspiracy, or any other offense for simply 32 being in the presence or vicinity of the medical use of [marijuana] 33 cannabis as authorized under P.L.2009, c.307 (C.24:6I-1 et al.) or 34 P.L.2015, c.158 (C.18A:40-12.22 et al.). 35 f. No custodial parent, guardian, or person who has legal 36 custody of a qualifying patient who is a minor shall be subject to 37 arrest or prosecution for constructive possession, conspiracy, or any 38 other offense for assisting the minor in the medical use of 39 [marijuana] cannabis as authorized under P.L.2009, c.307 (C.24:6I- 40 1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.). 41 g. For the purposes of medical care, including organ 42 transplants, a qualifying patient’s authorized use of medical 43 cannabis in accordance with the provisions of P.L.2009, c.307 44 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.) shall 45 be considered equivalent to the authorized use of any other 46 medication used at the direction of a health care practitioner, and

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1 shall not constitute the use of an illicit substance or otherwise 2 disqualify a qualifying patient from needed medical care. 3 h. No public or private school or institution of higher education 4 may refuse to enroll a person based solely on the person’s status as 5 a registrant with the commission, unless failing to do so would 6 result in the school or institution losing a monetary or licensing- 7 related benefit granted pursuant to federal law. No public or private 8 school or institution of higher education shall be penalized or 9 denied any benefit under State law solely on the basis of enrolling a 10 person who is registered with the commission. 11 i. No person shall refuse to rent, lease, or sublease any real 12 property or part or portion thereof, or discriminate in the terms, 13 conditions, or privileges of the rental or lease of any real property 14 or part or portion thereof or in the furnishing of facilities or services 15 in connection therewith, based solely on the status of the 16 prospective tenant as a registrant with the commission, unless 17 failing to do so would result in the person losing a monetary or 18 licensing-related benefit granted pursuant to federal law. No such 19 person shall be penalized or denied any benefit under State law 20 solely on the basis of renting or leasing real property to a person 21 who is registered with the commission. 22 j. No person shall be denied, or subject to adverse action in 23 connection with, any license, certification, or permit issued 24 pursuant to State law solely based on the person’s status as a 25 registrant with the commission, unless issuance or continuance of 26 the license, certification, or permit would result in the licensing or 27 permitting agency losing federal certification, federal funding, or 28 other benefits granted pursuant to federal law. 29 k. (1) Unless failing to do so would result in the health care 30 facility losing a monetary or licensing-related benefit granted 31 pursuant to federal law, a health care facility that employs or 32 maintains a professional affiliation with a health care practitioner 33 shall not take adverse employment action against the health care 34 practitioner or otherwise limit, restrict, or terminate a professional 35 affiliation with the health care practitioner solely based on the 36 health care practitioner engaging in conduct authorized under 37 P.L.2009, c.307 (C.24:6I-1 et al.), including, but not limited to, 38 authorizing patients for the medical use of cannabis, issuing written 39 instructions pursuant to section 10 of P.L.2009, c.307 (C.24:6I-10), 40 and consulting with patients regarding the use of medical cannabis 41 to treat the patient’s qualifying medical condition. 42 (2) No health care facility shall be penalized or denied any 43 benefit under State law solely on the basis of employing or 44 maintaining a professional affiliation with a health care practitioner 45 who engages in conduct authorized under P.L.2009, c.307 (C.24:6I- 46 1 et al.). 47 l. Unless failing to do so would result in the insurer or 48 insurance association losing a monetary or licensing-related benefit

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1 granted pursuant to federal law, an insurer or insurance association 2 authorized to issue medical malpractice liability insurance in New 3 Jersey shall not deny coverage to a health care practitioner, increase 4 the amount of premiums or deductibles under the policy, or charge 5 any additional fees in connection with the policy, solely based on 6 the health care practitioner engaging in conduct authorized under 7 P.L.2009, c.307 (C.24:6I-1 et al.), including, but not limited to, 8 authorizing qualifying patients for the medical use of cannabis, 9 issuing written instructions pursuant to section 10 of P.L.2009, 10 c.307 (C.24:6I-10), and consulting with patients regarding the use 11 of medical cannabis to treat a qualifying medical condition. No 12 insurer or insurance association shall be penalized or denied any 13 benefit under State law solely on the basis of providing medical 14 malpractice liability insurance to a health care practitioner who 15 engages in conduct authorized under P.L.2009, c.307 (C.24:6I- 16 1 et al.). 17 m. A person’s status as a registered qualifying patient, a 18 designated or institutional caregiver, or an owner, director, officer, 19 or employee of a medical cannabis cultivator, medical cannabis 20 manufacturer, medical cannabis dispensary, or clinical registrant 21 shall not constitute the sole grounds for entering an order that 22 restricts or denies custody of, or visitation with, a minor child of the 23 person. 24 n. (1) No health care facility shall be penalized or denied any 25 benefit under State law solely for permitting or prohibiting the 26 handling, administration, usage, or storage of medical cannabis, 27 provided that the facility’s policies related to medical cannabis are 28 consistent with all other facility policies concerning medication 29 handling, administration, usage, or storage. 30 (2) No health care facility shall be penalized or denied any 31 benefit under State law solely for prohibiting the smoking of 32 medical cannabis on facility property in accordance with the 33 facility’s smoke free policy. 34 o. No action or proceeding by the Division of Child Protection 35 and Permanency shall be initiated against a pregnant woman or 36 against the parent or legal guardian of minor child on the sole 37 grounds that the pregnant woman or the parent or legal guardian is a 38 registered qualifying patient, a designated or institutional caregiver, 39 or an owner, director, officer, or employee of a medical cannabis 40 cultivator, medical cannabis manufacturer, medical cannabis 41 dispensary, or clinical registrant; provided, however, that nothing in 42 this subsection shall preclude any action or proceeding by the 43 division based on harm or risk of harm to a child. 44 (cf: P.L.2015, c.158, s.4) 45 46 9. (New section) a. It shall be unlawful to take any adverse 47 employment action against an employee who is a registered

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1 qualifying patient based solely on the employee’s status as a 2 registrant with the commission. 3 b. (1) If an employer has a drug testing policy and an 4 employee or job applicant tests positive for cannabis, the employer 5 shall offer the employee or job applicant an opportunity to present a 6 legitimate medical explanation for the positive test result, and shall 7 provide written notice of the right to explain to the employee or job 8 applicant. 9 (2) Within three working days after receiving notice pursuant to 10 paragraph (1) of this subsection, the employee or job applicant may 11 submit information to the employer to explain the positive test 12 result, or may request a confirmatory retest of the original sample at 13 the employee’s or job applicant’s own expense. As part of an 14 employee’s or job applicant’s explanation for the positive test 15 result, the employee or job applicant may present an authorization 16 for medical cannabis issued by a health care practitioner, proof of 17 registration with the commission, or both. 18 c. Nothing in this section shall be deemed to: 19 (1) restrict an employer’s ability to prohibit, or take adverse 20 employment action for, the possession or use of intoxicating 21 substances during work hours or on the premises of the workplace 22 outside of work hours; or 23 (2) require an employer to commit any act that would cause the 24 employer to be in violation of federal law, that would result in a 25 loss of a licensing-related benefit pursuant to federal law, or that 26 would result in the loss of a federal contract or federal funding. 27 d. No employer shall be penalized or denied any benefit under 28 State law solely on the basis of employing a person who is 29 registered with the commission. 30 31 10. Section 7 of P.L.2009, c.307 (C.24:6I-7) is amended to read 32 as follows: 33 7. a. (1) The [department] commission shall accept 34 applications from entities for permits to operate as [alternative 35 treatment centers and may charge a reasonable fee for the issuance 36 of a permit under this section] medical cannabis cultivators, 37 medical cannabis manufacturers, and medical cannabis dispensaries. 38 (2) (a) For a period of 18 months after the effective date of 39 P.L. , c. (C. ) (pending before the Legislature as this bill): 40 (i) an applicant may concurrently hold a medical cannabis 41 cultivator permit and a medical cannabis manufacturer permit, but 42 shall not be authorized to hold a medical cannabis dispensary 43 permit; and 44 (ii) an applicant who holds a medical cannabis dispensary permit 45 shall not be authorized to concurrently hold a medical cannabis 46 cultivator permit or a medical cannabis manufacturer permit. 47 (b) Commencing 18 months after the effective date of P.L. , 48 c. (C. ) (pending before the Legislature as this bill), a permit

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1 holder shall be authorized to concurrently hold a medical cannabis 2 cultivator permit, a medical cannabis manufacturer permit, and a 3 medical cannabis dispensary permit, provided that no permit holder 4 shall be authorized to concurrently hold more than one permit of 5 each type. The permit holder may submit an application for a 6 permit of any type that the permit holder does not currently hold 7 prior to the expiration of the 18 month period described in 8 subparagraph (a) of this paragraph, provided that no permit shall be 9 awarded to the permit holder during the 18 month period if issuance 10 of the permit would violate the restrictions set forth in subparagraph 11 (a) of this paragraph concerning the types of permits that may be 12 concurrently held during the 18 month period. 13 (c) The provisions of subparagraph (a) of this paragraph shall 14 not apply to any alternative treatment center that was issued a 15 permit prior to the effective date of P.L. , c. (C. ) (pending 16 before the Legislature as this bill), to any alternative treatment 17 center that was issued a permit after the effective date of P.L. , 18 c. (C. ) (pending before the Legislature as this bill) pursuant 19 to an application submitted prior to the effective date of P.L. , 20 c. (C. ) (pending before the Legislature as this bill), or to one 21 of the six alternative treatment centers issued a permit pursuant to 22 section 11 of P.L. , c. (C. ) (pending before the Legislature 23 as this bill) that are expressly exempt from the provisions of 24 subparagraph (a) of this paragraph, which alternative treatment 25 centers shall be deemed to concurrently hold a medical cannabis 26 cultivator permit, a medical cannabis manufacturer permit, and a 27 medical cannabis dispensary permit, and shall be authorized to 28 engage in any conduct authorized pursuant to those permits in 29 relation to the cultivation, manufacturing, and dispensing of 30 medical cannabis. 31 (d) No entity may be issued or concurrently hold more than one 32 medical cannabis cultivator permit, one medical cannabis 33 manufacturer permit, or one medical cannabis dispensary permit at 34 one time, and no medical cannabis dispensary shall be authorized to 35 establish a satellite location on or after the effective date of P.L. , 36 c (C. ) (pending before the Legislature as this bill), except that 37 an alternative treatment center that was issued a permit prior to the 38 effective date of P.L. , c. (C. ) (pending before the 39 Legislature as this bill) or that was issued a permit after the 40 effective date of P.L. , c. (C. ) (pending before the 41 Legislature as this bill) pursuant to an application submitted prior to 42 the effective date of P.L. , c. (C. ) (pending before the 43 Legislature as this bill) shall be authorized to maintain any satellite 44 dispensary that was approved pursuant to an application submitted 45 prior to or within 18 months after the effective date of P.L. , 46 c. (C. ) (pending before the Legislature as this bill). The six 47 alternative treatment centers issued permits pursuant to section 11 48 of P.L. , c. (C. ) (pending before the Legislature as this bill)

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1 that are expressly exempt from the provisions of subparagraph (a) 2 of this paragraph shall be authorized to establish and maintain up to 3 one satellite dispensary location, provided that the satellite 4 dispensary was approved pursuant to an application submitted 5 within 18 months after the effective date of P.L. , c. (C. ) 6 (pending before the Legislature as this bill). 7 (e) No entity issued a medical cannabis cultivator, medical 8 cannabis manufacturer, or medical cannabis dispensary permit may 9 concurrently hold a clinical registrant permit issued pursuant to 10 section 13 of P.L. , c. (C. ) (pending before the legislature 11 as this bill), and no entity issued a clinical registrant permit 12 pursuant to section 13 of P.L. , c. (C. ) (pending before the 13 Legislature as this bill) may concurrently hold a medical cannabis 14 cultivator permit, a medical cannabis manufacturer permit, or a 15 medical cannabis dispensary permit. 16 (f) Any medical cannabis dispensary permit holder may be 17 approved by the commission to operate a medical cannabis 18 consumption area, provided that the permit holder otherwise meets 19 the requirements of section 28 of P.L. , c. (C. ) (pending 20 before the Legislature as this bill. 21 (3) The [department] commission shall seek to ensure the 22 availability of a sufficient number of [alternative treatment centers] 23 medical cannabis cultivators, medical cannabis manufacturers, and 24 medical cannabis dispensaries throughout the State, pursuant to 25 need, including at least two each in the northern, central, and 26 southern regions of the State. [The first two centers issued a permit 27 in each region shall be nonprofit entities, and centers subsequently] 28 Medical cannabis cultivators, medical cannabis manufacturers, and 29 medical cannabis dispensaries issued permits pursuant to this 30 section may be nonprofit or for-profit entities. 31 [An alternative treatment center] 32 (4) The commission shall periodically evaluate whether the 33 number of medical cannabis cultivator, medical cannabis 34 manufacturer, and medical cannabis dispensary permits issued are 35 sufficient to meet the needs of qualifying patients in the State, and 36 shall make requests for applications and issue such additional 37 permits as shall be necessary to meet those needs. The types of 38 permits requested and issued, and the locations of any additional 39 permits that are authorized, shall be in the discretion of the 40 executive director based on the needs of qualifying patients in the 41 State. 42 (5) (a) A medical cannabis cultivator shall be authorized to: 43 acquire a reasonable initial and ongoing inventory, as determined 44 by the [department] commission, of [marijuana] cannabis seeds or 45 seedlings and paraphernalia [,] ; possess, cultivate, plant, grow, 46 harvest, [process, display, manufacture,] and package medical 47 cannabis, including prerolled forms, for any authorized purpose,

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1 including, but not limited to, research purposes; and deliver, 2 transfer, transport, distribute, supply, or sell [, or dispense] medical 3 [marijuana] cannabis [, or] and related supplies to any medical 4 cannabis cultivator, medical cannabis manufacturer, medical 5 cannabis dispensary, or clinical registrant in the State. In no case 6 shall a medical cannabis cultivator or clinical registrant operate or 7 be located on land that is valued, assessed or taxed as an 8 agricultural or horticultural use pursuant to the "Farmland 9 Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.). 10 (b) A medical cannabis manufacturer shall be authorized to: 11 purchase or obtain medical cannabis from any medical cannabis 12 cultivator, medical cannabis manufacturer, or clinical registrant in 13 the State; possess and utilize medical cannabis in the manufacture, 14 production, and creation of medical cannabis products; and deliver, 15 transfer, transport, supply, or sell medical cannabis products and 16 related supplies to any medical cannabis manufacturer, medical 17 cannabis dispensary, or clinical registrant in the State. 18 (c) A medical cannabis dispensary shall be authorized to: 19 purchase or acquire medical cannabis from any medical cannabis 20 cultivator, medical cannabis dispensary, or clinical registrant in the 21 State and medical cannabis products and related supplies from any 22 medical cannabis manufacturer, medical cannabis dispensary, or 23 clinical registrant in the State; purchase or acquire paraphernalia 24 from any legal source; and distribute, supply, sell, or dispense 25 medical cannabis, medical cannabis products, paraphernalia, and 26 related supplies to qualifying patients or their [primary] designated 27 or institutional caregivers who are registered with the [department] 28 commission pursuant to section 4 of [this act] P.L.2009, c.307 29 (C.24:6I-4). [An alternative treatment center] 30 (6) A medical cannabis cultivator shall not be limited in the 31 number of strains of medical [marijuana] cannabis cultivated, and a 32 medical cannabis manufacturer shall not be limited in the number or 33 type of medical cannabis products manufactured, produced, or 34 created. A medical cannabis manufacturer may package, and a 35 medical cannabis dispensary may directly dispense [marijuana] 36 medical cannabis and medical cannabis products to qualifying 37 patients and their designated and institutional caregivers in any 38 authorized form. Authorized forms shall include dried form, oral 39 lozenges, topical formulations, transdermal form, sublingual form, 40 tincture form, or edible form, or any other form as authorized by the 41 [commissioner] executive director. Edible form shall include 42 tablets, capsules, drops or syrups, oils, and any other form as 43 authorized by the [commissioner] executive director. [Edible 44 forms shall be available only to qualifying patients who are minors. 45 Applicants for authorization as nonprofit alternative treatment 46 centers shall be subject to all applicable State laws governing 47 nonprofit entities, but]

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1 (7) (a) All medical cannabis and medical cannabis products 2 packaged for dispensing to or on behalf of a registered qualifying 3 patient shall include a label that details: 4 (i) the production date of the medical cannabis or medical 5 cannabis product; 6 (ii) the strain or type of medical cannabis contained in the 7 package or used to manufacture, produce, or create the medical 8 cannabis product, as applicable, including the scientific name and 9 any brand or product name for the medical cannabis or medical 10 cannabis product; 11 (iii) the growth method for medical cannabis contained in the 12 package or used to manufacture, produce, or create the medical 13 cannabis product, including an indication as to whether the medical 14 cannabis was grown in dirt, hydroponically, or otherwise, whether 15 the medical cannabis was grown using all-organic materials, and a 16 complete list of any nonorganic pesticides, fungicides, and 17 herbicides used during the cultivation of the medical cannabis; 18 (iv) in the case of a medical cannabis product, a list of all the 19 ingredients used to manufacture, produce, or create the medical 20 cannabis product, which list shall specifically highlight potential 21 allergens contained within the product or to which the product may 22 have been exposed during the manufacturing, processing, or 23 creation process; 24 (v) in the case of a medical cannabis product, whether the 25 product requires refrigeration or other special preservation to 26 preserve the quality, integrity, and safety of the product, along with 27 the expiration date for the product, if any; and 28 (vi) information identifying the medical cannabis cultivator or 29 clinical registrant that cultivated the medical cannabis and the 30 medical cannabis manufacturer or clinical registrant that 31 manufactured, produced, or created the medical cannabis product, if 32 applicable, as well as the production batch and lot numbers of the 33 medical cannabis and, if applicable, medical cannabis product. 34 (b) In the case of medical cannabis, the label required pursuant 35 to subparagraph (a) of this paragraph shall be prepared by the 36 medical cannabis cultivator or clinical registrant that cultivated the 37 medical cannabis, and shall be affixed at the time the medical 38 cannabis is packaged for dispensing. In the case of a medical 39 cannabis product, the label required pursuant to subparagraph (a) of 40 this paragraph shall be prepared by the medical cannabis 41 manufacturer or clinical registrant that manufactured, produced, or 42 created the product, and shall be affixed at the time the product is 43 packaged for dispensing. In addition, each package of medical 44 cannabis and each medical cannabis product shall include a label 45 with the name and contact information for the medical cannabis 46 dispensary or clinical registrant that dispensed the medical cannabis 47 or medical cannabis product, which shall be affixed by the 48 dispensary or clinical registrant prior to or at the time of dispensing.

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1 (c) A medical cannabis cultivator or clinical registrant that 2 furnishes medical cannabis to a medical cannabis manufacturer or 3 clinical registrant for processing shall furnish all such information 4 to the manufacturer or clinical registrant as shall be necessary to 5 prepare a label that meets the requirements of subparagraph (a) of 6 this paragraph. 7 (8) Nonprofit medical cannabis cultivators, medical cannabis 8 manufacturers, and medical cannabis dispensaries need not be 9 recognized as a 501(c)(3) organization by the federal Internal 10 Revenue Service. 11 b. The [department] commission shall require that an applicant 12 provide such information as the [department] commission 13 determines to be necessary pursuant to regulations adopted pursuant 14 to [this act] P.L.2009, c.307 (C.24:6I-1 et al.). 15 c. A person who has been convicted of a crime of the first, 16 second, or third degree under New Jersey law or of a crime 17 involving any controlled dangerous substance or controlled 18 substance analog as set forth in chapter 35 of Title 2C of the New 19 Jersey Statutes except paragraph (4) of subsection a. of 20 N.J.S.2C:35-10, or any similar law of the United States or any other 21 state shall not be issued a permit to operate as [an alternative 22 treatment center] a medical cannabis cultivator, medical cannabis 23 manufacturer, medical cannabis dispensary, or clinical registrant or 24 be a director, officer, or employee of [an alternative treatment 25 center] a medical cannabis cultivator, medical cannabis 26 manufacturer, medical cannabis dispensary, or clinical registrant, 27 unless such conviction occurred after the effective date of [this act] 28 P.L.2009, c.307 (C.24:6I-1 et al.) and was for a violation of federal 29 law relating to possession or sale of [marijuana] cannabis for 30 conduct that is authorized under [this act] P.L.2009, c.307 31 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.). 32 d. (1) The [commissioner] executive director shall require 33 each applicant seeking a permit to operate as [an alternative 34 treatment center] , to be a director, officer, or employee of, or to be 35 a significantly involved person in, a medical cannabis cultivator, 36 medical cannabis manufacturer, medical cannabis dispensary, or 37 clinical registrant to undergo a criminal history record background 38 check. 39 Any individual seeking to become a director, officer, or 40 employee of a medical cannabis cultivator, medical cannabis 41 manufacturer, medical cannabis dispensary, or clinical registrant, 42 after issuance of an initial permit shall notify the commission and 43 shall complete a criminal history record background check and 44 provide all information as may be required by the commission as a 45 condition of assuming a position as director, officer or employee of 46 the permitted entity. An individual who incurs an investment 47 interest or gains the authority to make controlling decisions in a

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1 permitted entity that makes the individual a significantly involved 2 person, shall notify the commission, complete a criminal history 3 record background check, and provide all information as may be 4 required by the commission no later than 30 days after the date the 5 individual becomes a significantly involved person, or any permit 6 issued to the individual or group of which the significantly involved 7 person is a member shall be revoked and the individual or group 8 shall be deemed ineligible to hold any ownership or investment 9 interest in a medical cannabis cultivator, medical cannabis 10 manufacturer, medical cannabis dispensary, or clinical registrant for 11 a period of two years, commencing from the date of revocation. 12 For purposes of this section, the term "applicant" shall include 13 any owner, director, officer, or employee of [an alternative 14 treatment center] , and any significantly involved person in, a 15 medical cannabis cultivator, medical cannabis manufacturer, 16 medical cannabis dispensary, or clinical registrant. The 17 [commissioner] executive director is authorized to exchange 18 fingerprint data with and receive criminal history record 19 background information from the Division of State Police and the 20 Federal Bureau of Investigation consistent with the provisions of 21 applicable federal and State laws, rules, and regulations. The 22 Division of State Police shall forward criminal history record 23 background information to the [commissioner] executive director 24 in a timely manner when requested pursuant to the provisions of 25 this section. 26 An applicant who is required to undergo a criminal history 27 record background check pursuant to this section shall submit to 28 being fingerprinted in accordance with applicable State and federal 29 laws, rules, and regulations. No check of criminal history record 30 background information shall be performed pursuant to this section 31 unless the applicant has furnished [his] the applicant’s written 32 consent to that check. An applicant who is required to undergo a 33 criminal history record background check pursuant to this section 34 who refuses to consent to, or cooperate in, the securing of a check 35 of criminal history record background information shall not be 36 considered for a permit to operate, or authorization to be employed 37 at or to be an investor in, [an alternative treatment center] a 38 medical cannabis cultivator, medical cannabis manufacturer, 39 medical cannabis dispensary, or clinical registrant. An applicant 40 shall bear the cost for the criminal history record background check, 41 including all costs of administering and processing the check. 42 (2) The [commissioner] executive director shall not approve an 43 applicant for a permit to operate, or authorization to be employed at 44 or to be an investor in, [an alternative treatment center] a medical 45 cannabis cultivator, medical cannabis manufacturer, medical 46 cannabis dispensary, or clinical registrant if the criminal history

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1 record background information of the applicant reveals a 2 disqualifying conviction as set forth in subsection c. of this section. 3 (3) Upon receipt of the criminal history record background 4 information from the Division of State Police and the Federal 5 Bureau of Investigation, the [commissioner] executive director 6 shall provide written notification to the applicant of [his] the 7 applicant’s qualification for or disqualification for a permit to 8 operate or be a director, officer, or employee of [an alternative 9 treatment center] , or an investor in, a medical cannabis cultivator, 10 medical cannabis manufacturer, medical cannabis dispensary, or 11 clinical registrant. 12 If the applicant is disqualified because of a disqualifying 13 conviction pursuant to the provisions of this section, the conviction 14 that constitutes the basis for the disqualification shall be identified 15 in the written notice. 16 (4) The Division of State Police shall promptly notify the 17 [commissioner] executive director in the event that an individual 18 who was the subject of a criminal history record background check 19 conducted pursuant to this section is convicted of a crime or offense 20 in this State after the date the background check was performed. 21 Upon receipt of that notification, the [commissioner] executive 22 director shall make a determination regarding the continued 23 eligibility to operate or be a director, officer, or employee of [an 24 alternative treatment center] , or an investor in, a medical cannabis 25 cultivator, medical cannabis manufacturer, medical cannabis 26 dispensary, or clinical registrant. 27 (5) Notwithstanding the provisions of subsection [b.] c. of this 28 section to the contrary, the [commissioner] executive director may 29 offer provisional authority for an applicant to be an owner, director, 30 officer, or employee of [an alternative treatment center] , or an 31 investor in, a medical cannabis cultivator, medical cannabis 32 manufacturer, medical cannabis dispensary, or clinical registrant for 33 a period not to exceed three months if the applicant submits to the 34 [commissioner] executive director a sworn statement attesting that 35 the person has not been convicted of any disqualifying conviction 36 pursuant to this section. 37 (6) Notwithstanding the provisions of subsection [b.] c. of this 38 section to the contrary, no applicant to be an owner, director, 39 officer, or employee of [an alternative treatment center] , or an 40 investor in, a medical cannabis cultivator, medical cannabis 41 manufacturer, medical cannabis dispensary, or clinical registrant 42 shall be disqualified on the basis of any conviction disclosed by a 43 criminal history record background check conducted pursuant to 44 this section if the individual has affirmatively demonstrated to the 45 [commissioner] executive director clear and convincing evidence 46 of rehabilitation. In determining whether clear and convincing

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1 evidence of rehabilitation has been demonstrated, the following 2 factors shall be considered: 3 (a) the nature and responsibility of the position which the 4 convicted individual would hold, has held, or currently holds; 5 (b) the nature and seriousness of the crime or offense; 6 (c) the circumstances under which the crime or offense 7 occurred; 8 (d) the date of the crime or offense; 9 (e) the age of the individual when the crime or offense was 10 committed; 11 (f) whether the crime or offense was an isolated or repeated 12 incident; 13 (g) any social conditions which may have contributed to the 14 commission of the crime or offense; and 15 (h) any evidence of rehabilitation, including good conduct in 16 prison or in the community, counseling or psychiatric treatment 17 received, acquisition of additional academic or vocational 18 schooling, successful participation in correctional work-release 19 programs, or the recommendation of those who have had the 20 individual under their supervision. 21 e. The [department] commission shall issue a permit to [a 22 person to] operate [as an alternative treatment center] or be an 23 owner, director, officer, or employee of, or an investor in, a medical 24 cannabis cultivator, medical cannabis manufacturer, or medical 25 cannabis dispensary if the [department] commission finds that 26 issuing such a permit would be consistent with the purposes of [this 27 act] P.L.2009, c.307 (C.24:6I-1 et al.) and the requirements of this 28 section and section 11 of P.L. , c. (C. ) (pending before the 29 Legislature as this bill) are met [and the department has verified the 30 information contained in the application. The department shall 31 approve or deny an application within 60 days after receipt of a 32 completed application]. The denial of an application shall be 33 considered a final agency decision, subject to review by the 34 Appellate Division of the Superior Court. [The department may 35 suspend or revoke a permit to operate as an alternative treatment 36 center for cause, which shall be subject to review by the Appellate 37 Division of the Superior Court] An initial permit to operate a 38 medical cannabis cultivator, medical cannabis manufacturer, or 39 medical cannabis dispensary issued on or after the effective date of 40 P.L. , c. (C. ) (pending before the Legislature as this bill) 41 shall be valid for three years. Medical cannabis cultivator, medical 42 cannabis manufacturer, and medical cannabis dispensary permits 43 shall be renewable biennially. 44 f. A person who has been issued a permit pursuant to this 45 section , a conditional permit pursuant to section 11 of P.L. , 46 c. (C. ) (pending before the Legislature as this bill), or a 47 clinical registrant permit pursuant to section 13 of P.L. ,

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1 c. (C. ) (pending before the Legislature as this bill) shall 2 display the permit or conditional permit at the front entrance to the 3 premises of the [alternative treatment center] permitted facility at 4 all times when [marijuana is being produced, or dispensed to a 5 registered qualifying patient or the patient's primary caregiver] the 6 facility is engaged in conduct authorized pursuant to P.L.2009, 7 c.307 (C.24:6I-1 et al.) involving medical cannabis, including, but 8 not limited to, the cultivating, manufacturing, or dispensing of 9 medical cannabis. 10 g. [An alternative treatment center] A medical cannabis 11 cultivator, medical cannabis manufacturer, medical cannabis 12 dispensary, or clinical registrant shall report any change in 13 information to the [department] commission not later than 10 days 14 after such change, or the permit shall be deemed null and void. No 15 entity issued a permit pursuant to this section or pursuant to section 16 13 of P.L. , c. (C. ) (pending before the Legislature as this 17 bill) may obtain any additional permit, expand the scope of 18 operations approved under an existing permit, or commence the 19 operation of any business or initiate any activities involving 20 cannabis that are not expressly authorized under an existing permit 21 held by that entity or the provisions of P.L.2009, c.307 (C.24:6I-1 et 22 al.), without approval of both the commission and the municipality 23 in which the permitted facility is located. 24 h. [An alternative treatment center may charge a registered 25 qualifying patient or primary caregiver for the reasonable costs 26 associated with the production and distribution of marijuana for the 27 cardholder] (1) Each medical cannabis cultivator shall maintain 28 and make available through its Internet website, if any, a standard 29 price list that shall apply to all medical cannabis sold by the 30 medical cannabis cultivator to other medical cannabis cultivators 31 and to medical cannabis manufacturers, medical cannabis 32 dispensaries, and clinical registrants, which prices shall be 33 reasonable and consistent with the actual costs incurred by the 34 medical cannabis cultivator in connection with cultivating the 35 medical cannabis. The prices charged by the medical cannabis 36 cultivator shall not deviate from the prices indicated on the 37 facility’s current price list. 38 (2) Each medical cannabis manufacturer shall maintain and 39 make available through its Internet website, if any, a standard price 40 list that shall apply to all medical cannabis products sold by the 41 medical cannabis manufacturer to other medical cannabis 42 manufacturers and to medical cannabis dispensaries and clinical 43 registrants, which prices shall be reasonable and consistent with the 44 actual costs incurred by the medical cannabis manufacturer in 45 connection with producing the medical cannabis product. The 46 prices charged by the medical cannabis manufacturer shall not 47 deviate from the prices indicated on the facility’s current price list.

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1 (3) Each clinical registrant shall maintain and make available 2 through its Internet website, if any, a standard price list that shall 3 apply to all medical cannabis sold by the clinical registrant to other 4 clinical registrants and to medical cannabis cultivators, medical 5 cannabis manufacturers, and medical cannabis dispensaries and to 6 all medical cannabis products sold by the clinical registrant to other 7 clinical registrants and to medical cannabis manufacturers and 8 medical cannabis dispensaries, which prices shall be reasonable and 9 consistent with the actual costs incurred by the clinical registrant in 10 connection with cultivating the medical cannabis or producing the 11 medical cannabis product. The prices charged by the clinical 12 registrant shall not deviate from the prices indicated on the clinical 13 registrant’s current price list. Any prices a clinical registrant 14 charges to a qualifying patient, designated caregiver, or institutional 15 caregiver for medical cannabis, medical cannabis products, and 16 related supplies and paraphernalia shall be reasonable and 17 consistent with the actual costs incurred by the clinical registrant in 18 connection with cultivating, producing, acquiring, or dispensing the 19 medical cannabis or medical cannabis product and related supplies 20 and paraphernalia. A clinical registrant may establish a written 21 policy for making medical cannabis available at a reduced price or 22 without charge to qualifying patients who have a demonstrated 23 financial hardship, as that term shall be defined by the commission 24 by regulation. 25 (4) Any prices a medical cannabis dispensary charges to another 26 medical cannabis dispensary or to a clinical registrant, qualifying 27 patient, designated caregiver, or institutional caregiver for medical 28 cannabis, medical cannabis products, and related supplies and 29 paraphernalia shall be reasonable and consistent with the actual 30 costs incurred by the medical cannabis dispensary in connection 31 with acquiring and selling, transferring, or dispensing the medical 32 cannabis or medical cannabis product and related supplies and 33 paraphernalia. A medical cannabis dispensary may establish a 34 written policy for making medical cannabis available at a reduced 35 price or without charge to qualifying patients who have a 36 demonstrated financial hardship, as that term shall be defined by the 37 commission by regulation. 38 (5) A price list required under paragraphs (1), (2), or (3) of this 39 subsection may be revised no more than once per month, and each 40 medical cannabis cultivator, medical cannabis manufacturer, and 41 clinical registrant shall be responsible for ensuring that the 42 commission has a copy of the facility’s current price list. A 43 medical cannabis cultivator, medical cannabis manufacturer, or 44 clinical registrant shall be liable to a civil penalty of $1,000 for 45 each sale that occurs at a price that deviates from the entity’s 46 current price list, and to a civil penalty of $10,000 for each week 47 during which the entity’s current price list is not on file with the 48 commission. Any civil penalties collected by the commission

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1 pursuant to this section shall be used by the commission for the 2 purposes of administering the State medical cannabis program. 3 i. The [commissioner] executive director shall adopt 4 regulations to: 5 (1) require such written documentation of each delivery of 6 [marijuana] cannabis to, and pickup of [marijuana] cannabis for, a 7 registered qualifying patient, including the date and amount 8 dispensed, to be maintained in the records of the [alternative 9 treatment center] medical cannabis dispensary or clinical registrant, 10 as the [commissioner] executive director determines necessary to 11 ensure effective documentation of the operations of each 12 [alternative treatment center] medical cannabis dispensary or 13 clinical registrant; 14 (2) monitor, oversee, and investigate all activities performed by 15 [an alternative treatment center] medical cannabis cultivators, 16 medical cannabis manufacturers, medical cannabis dispensaries, and 17 clinical registrants; [and] 18 (3) ensure adequate security of all facilities 24 hours per day [, 19 including production and retail locations,] and security of all 20 delivery methods to registered qualifying patients; and 21 (4) establish thresholds for administrative action to be taken 22 against a medical cannabis cultivator, medical cannabis 23 manufacturer, medical cannabis dispensary, or clinical registrant 24 and its employees, officers, investors, directors, or governing board 25 pursuant to subsection m. of this section, including, but not limited 26 to, specific penalties or disciplinary actions that may be imposed in 27 a summary proceeding. 28 j. (1) Each medical cannabis cultivator, medical cannabis 29 manufacturer, medical cannabis dispensary, and clinical registrant 30 shall require the owners, directors, officers, and employees at the 31 permitted facility to complete at least eight hours of ongoing 32 training each calendar year. The training shall be tailored to the 33 roles and responsibilities of the individual’s job function, and shall 34 include training on confidentiality and such other topics as shall be 35 required by the commission. 36 (2) Each medical cannabis dispensary and clinical registrant 37 shall consider whether to make interpreter services available to the 38 population served, including for individuals with a visual or hearing 39 impairment. The commission shall provide assistance to any 40 medical cannabis dispensary or clinical registrant that seeks to 41 provide such services in locating appropriate interpreter resources. 42 A medical cannabis dispensary or clinical registrant shall assume 43 the cost of providing interpreter services pursuant to this 44 subsection. 45 k. The first six alternative treatment centers issued permits 46 following the effective date of P.L.2009, c.307 (C.24:6I-1 et al.) 47 shall be authorized to sell or transfer such permit and other assets to

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1 a for-profit entity, provided that: the sale or transfer is approved by 2 the commission; each owner, director, officer, and employee of, and 3 significantly involved person in, the entity seeking to purchase or 4 receive the transfer of the permit, undergoes a criminal history 5 record background check pursuant to subsection d. of this section, 6 provided that nothing in this subsection shall be construed to 7 require any individual to undergo a criminal history record 8 background check if the individual would otherwise be exempt from 9 undergoing a criminal history record background check pursuant to 10 subsection d. of this section; the commission finds that the sale or 11 transfer of the permit would be consistent with the purposes of 12 P.L.2009, c.307 (C.24:6I-1 et al.); and no such sale or transfer shall 13 be authorized more than one year after the effective date of P.L. , 14 c. (C. ) (pending before the Legislature as this bill). The sale 15 or transfer of a permit pursuant to this subsection shall not be 16 subject to the requirements of the “New Jersey Nonprofit 17 Corporation Act,” N.J.S.15A:1-1 et seq., provided that, prior to or 18 at the time of the sale or transfer, all debts and obligations of the 19 nonprofit entity are either paid in full or assumed by the for-profit 20 entity purchasing or acquiring the permit, or a reserve fund is 21 established for the purpose of paying in full the debts and 22 obligations of the nonprofit entity, and the for-profit entity pays the 23 full value of all assets held by the nonprofit entity, as reflected on 24 the nonprofit entity’s balance sheet, in addition to the agreed-upon 25 price for the sale or transfer of the entity’s alternative treatment 26 center permit. Until such time as the members of the Cannabis 27 Regulatory Commission are appointed and the commission first 28 organizes, the Department of Health shall have full authority to 29 approve a sale or transfer pursuant to this subsection. No other 30 entity holding a permit issued pursuant to this section or pursuant to 31 section 13 of P.L. , c. (C. ) (pending before the Legislature 32 as this bill) shall be authorized to sell or transfer such permit to any 33 other entity at any time. 34 l. No employee of any department, division, agency, board, or 35 other State, county, or local government entity involved in the 36 process of reviewing, processing, or making determinations with 37 regard to medical cannabis cultivator, medical cannabis 38 manufacturer, medical cannabis dispensary, or clinical registrant 39 permit applications shall have any direct or indirect financial 40 interest in the cultivating, manufacturing, or dispensing of medical 41 cannabis or related paraphernalia, or otherwise receive anything of 42 value from an applicant for a medical cannabis cultivator, medical 43 cannabis manufacturer, medical cannabis dispensary, or clinical 44 registrant permit in exchange for reviewing, processing, or making 45 any recommendations with respect to a permit application. 46 m. In the event that a medical cannabis cultivator, medical 47 cannabis manufacturer, medical cannabis dispensary, or clinical 48 registrant fails to comply with any requirements set forth in

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1 P.L.2009, c.307 (C.24:6I-1 et al.) or any related law or regulation, 2 the commission may invoke penalties or take administrative action 3 against the medical cannabis cultivator, medical cannabis 4 manufacturer, medical cannabis dispensary, or clinical registrant 5 and its employees, officers, investors, directors, or governing board, 6 including, but not limited to, assessing fines, referring matters to 7 another State agency, and suspending or terminating any permit 8 held by the medical cannabis cultivator, medical cannabis 9 manufacturer, medical cannabis dispensary, or clinical registrant. 10 Any penalties imposed or administrative actions taken by the 11 commission pursuant to this subsection may be imposed in a 12 summary proceeding. 13 (cf: P.L.2013, c.160, s.2) 14 15 11. (New section) The commission shall, no later than 90 days 16 after the effective date of P.L. , c. (C. ) (pending before the 17 Legislature as this bill) or upon adoption of rules and regulations as 18 provided in subsection c. of section 18 of P.L.2009, c.307 (C.24:6I- 19 16), whichever occurs first, begin accepting and processing 20 applications for new medical cannabis cultivator, medical cannabis 21 manufacturer, and medical cannabis dispensary permits. 22 Notwithstanding the provisions of subparagraph (a) of paragraph (2) 23 of subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7), the first 24 six alternative treatment center permits issued by the commission 25 pursuant to an application submitted on or after the effective date of 26 P.L. , c. (C. ) (pending before the Legislature as this bill) 27 shall be deemed to concurrently hold a medical cannabis cultivator 28 permit, a medical cannabis manufacturer permit, and a medical 29 cannabis dispensary permit. Any permits issued by the commission 30 thereafter shall be subject to the provisions of subparagraph (a) of 31 paragraph (2) of subsection a. of section 7 of P.L.2009, c.307 32 (C.24:6I-7). The commission may establish nonrefundable 33 application fees for permit applications and permit fees for 34 successful applicants. 35 The commission shall make a determination as to any permit 36 application no later than 90 days after receiving the application, 37 which may include a determination that the commission reasonably 38 requires more time to adequately review the application. The 39 commission may issue a conditional permit to an applicant pending 40 the commission’s final determination on the applicant’s permit 41 application, provided the applicant submits a sworn statement 42 attesting that no person named in the permit application has been 43 convicted of any disqualifying conviction pursuant to subsection c. 44 of section 7 of P.L.2009, c.307 (C.24:6I-7) or that, if a person 45 named in the application has been convicted of a disqualifying 46 conviction, the person has or will submit evidence of rehabilitation. 47 The commission shall determine by regulation which permit 48 requirements are necessary for the issuance of a conditional permit

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1 pursuant to this section and the scope of conduct authorized under a 2 conditional permit, and shall establish the terms, conditions, and 3 restrictions for such conditional permit as may be necessary and 4 appropriate. 5 The commission shall issue a permit to an approved applicant at 6 such time as the commission completes the application review 7 process and any mandatory inspections, and determines that the 8 applicant is in compliance with and is implementing the plans, 9 procedures, protocols, actions, or other measures set forth in the 10 applicant’s permit application submitted pursuant to section 12 of 11 P.L. , c. (C. ) (pending before the Legislature as this bill), 12 did maintain compliance with the terms, conditions, or restrictions 13 of a conditional permit issued to the applicant, if applicable, and is 14 otherwise in compliance with the requirements of P.L.2009, c.307 15 (C.24:6I-1 et al.). 16 17 12. (New section) a. Each application for an initial three-year 18 medical cannabis cultivator permit, medical cannabis manufacturer 19 permit, and medical cannabis dispensary permit, and each 20 application for biennial renewal of such permit, shall be submitted 21 to the commission. A full, separate application shall be required for 22 each initial permit requested by the applicant and for each location 23 at which an applicant seeks to operate, regardless of whether the 24 applicant was previously issued a medical cannabis cultivator, 25 medical cannabis manufacturer, medical cannabis dispensary, or 26 clinical registrant permit and regardless of whether the applicant 27 currently holds a medical cannabis cultivator, medical cannabis 28 manufacturer, or medical cannabis dispensary permit. Renewal 29 applications shall be submitted to the commission on a form and in 30 a manner as shall be specified by the commission no later than 90 31 days before the date the current permit will expire. 32 b. An initial permit application shall be evaluated according to 33 criteria to be developed by the commission. The commission shall 34 determine the point values to be assigned to each criterion, which 35 shall include bonus points for applicants who are residents of New 36 Jersey. 37 c. The criteria to be developed by the commission pursuant to 38 subsection b. of this section shall include, in addition to the criteria 39 set forth in subsections d. and e. of this section and any other 40 criteria developed by the commission, an analysis of the applicant’s 41 operating plan, excluding safety and security criteria, which shall 42 include the following: 43 (1) In the case of an applicant for a medical cannabis cultivator 44 permit, the operating plan summary shall include a written 45 description concerning the applicant’s qualifications for, experience 46 in, and knowledge of each of the following topics: 47 (a) State-authorized cultivation of medical cannabis;

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1 (b) conventional horticulture or agriculture, familiarity with 2 good agricultural practices, and any relevant certifications or 3 degrees; 4 (c) quality control and quality assurance; 5 (d) recall plans; 6 (e) packaging and labeling; 7 (f) inventory control and tracking software or systems for the 8 production of medical cannabis; 9 (g) analytical chemistry and testing of medical cannabis; 10 (h) water management practices; 11 (i) odor mitigation practices; 12 (j) onsite and offsite recordkeeping; 13 (k) strain variety and plant genetics; 14 (l) pest control and disease management practices, including 15 plans for the use of pesticides, nutrients, and additives; 16 (m) waste disposal plans; and 17 (n) compliance with applicable laws and regulations. 18 (2) In the case of an applicant for a medical cannabis 19 manufacturer permit, the operating plan summary shall include a 20 written description concerning the applicant’s qualifications for, 21 experience in, and knowledge of each of the following topics: 22 (a) State-authorized manufacture, production, and creation of 23 cannabis products using appropriate extraction methods, including 24 intended use and sourcing of extraction equipment and associated 25 solvents or intended methods and equipment for non-solvent 26 extraction; 27 (b) pharmaceutical manufacturing, good manufacturing 28 practices, and good laboratory practices; 29 (c) quality control and quality assurance; 30 (d) recall plans; 31 (e) packaging and labeling; 32 (f) inventory control and tracking software or systems for the 33 production of medical cannabis; 34 (g) analytical chemistry and testing of medical cannabis and 35 medical cannabis products and formulations; 36 (h) water management practices; 37 (i) odor mitigation practices; 38 (j) onsite and offsite recordkeeping; 39 (k) a list of product formulations or products proposed to be 40 manufactured with estimated profiles, if known, 41 including varieties with high content; 42 (l) intended use and sourcing of all non-cannabis ingredients 43 used in the manufacture, production, and creation of cannabis 44 products, including methods to verify or ensure the safety and 45 integrity of those ingredients and their potential to be or contain 46 allergens; 47 (m) waste disposal plans; and 48 (n) compliance with applicable laws and regulations.

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1 (3) In the case of an applicant for a medical cannabis dispensary 2 permit, the operating plan summary shall include a written 3 description concerning the applicant’s qualifications for, experience 4 in, and knowledge of each of the following topics: 5 (a) State-authorized dispensation of medical cannabis to 6 qualifying patients; 7 (b) healthcare, medicine, and treatment of patients with 8 qualifying medical conditions; 9 (c) medical cannabis product evaluation procedures; 10 (d) recall plans; 11 (e) packaging and labeling; 12 (f) inventory control and point-of-sale software or systems for 13 the sale of medical cannabis; 14 (g) patient counseling procedures; 15 (h) the routes of administration, strains, varieties, and 16 cannabinoid profiles of medical cannabis and medical cannabis 17 products; 18 (i) odor mitigation practices; 19 (j) onsite and offsite recordkeeping; 20 (k) compliance with State and federal patient privacy rules; 21 (l) waste disposal plans; and 22 (m) compliance with applicable laws and regulations. 23 d. The criteria to be developed by the commission pursuant to 24 subsection b. of this section shall include, in addition to the criteria 25 set forth in subsections c. and e. of this section and any other 26 criteria developed by the commission, an analysis of the following 27 factors, if applicable: 28 (1) The applicant’s environmental impact plan. 29 (2) A summary of the applicant’s safety and security plans and 30 procedures, which shall include descriptions of the following: 31 (a) plans for the use of security personnel, including 32 contractors; 33 (b) the experience or qualifications of security personnel and 34 proposed contractors; 35 (c) security and surveillance features, including descriptions of 36 any alarm systems, video surveillance systems, and access and 37 visitor management systems, along with drawings identifying the 38 proposed locations for surveillance cameras and other security 39 features; 40 (d) plans for the storage of medical cannabis and medical 41 cannabis products, including any safes, vaults, and climate control 42 systems that will be utilized for this purpose; 43 (e) a diversion prevention plan; 44 (f) an emergency management plan; 45 (g) procedures for screening, monitoring, and performing 46 criminal history record background checks of employees; 47 (h) cybersecurity procedures, including, in the case of an 48 applicant for a medical cannabis dispensary permit, procedures for

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1 collecting, processing, and storing patient data, and the applicant’s 2 familiarity with State and federal privacy laws; 3 (i) workplace safety plans and the applicant’s familiarity with 4 federal Occupational Safety and Health Administration regulations; 5 (j) the applicant’s history of workers’ compensation claims and 6 safety assessments; 7 (k) procedures for reporting adverse events; and 8 (l) a sanitation practices plan. 9 (3) A summary of the applicant’s business experience, including 10 the following, if applicable: 11 (a) the applicant’s experience operating businesses in highly- 12 regulated industries; 13 (b) the applicant’s experience in operating alternative treatment 14 centers and related medical cannabis production and dispensation 15 entities under the laws of New Jersey or any other state or 16 jurisdiction within the United States; and 17 (c) the applicant’s plan to comply with and mitigate the effects 18 of 26 U.S.C. s.280E on cannabis businesses, and for evidence that 19 the applicant is not in arrears with respect to any tax obligation to 20 the State. 21 In evaluating the experience described under subparagraphs (a), 22 (b), and (c) of this paragraph, the commission shall afford the 23 greatest weight to the experience of the applicant itself, controlling 24 owners, and entities with common ownership or control with the 25 applicant; followed by the experience of those with a 15 percent or 26 greater ownership interest in the applicant’s organization; followed 27 by interest holders in the applicant’s organization; followed by 28 other officers, directors, and bona fide full-time employees of the 29 applicant as of the submission date of the application. 30 (4) A description of the proposed location for the applicant’s 31 site, including the following, if applicable: 32 (a) the proposed location, the surrounding area, and the 33 suitability or advantages of the proposed location, along with a 34 floor plan and optional renderings or architectural or engineering 35 plans; 36 (b) the submission of zoning approvals for the proposed 37 location, which shall consist of a letter or affidavit from appropriate 38 municipal officials that the location will conform to municipal 39 zoning requirements allowing for such activities related to the 40 cultivation, manufacturing, or dispensing of medical cannabis, 41 cannabis products, and related supplies as will be conducted at the 42 proposed facility; and 43 (c) the submission of proof of local support for the suitability of 44 the location, which may be demonstrated by a resolution adopted by 45 the municipality’s governing body indicating that the intended 46 location is appropriately located or otherwise suitable for such 47 activities related to the cultivation, manufacturing, or dispensing of

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1 medical cannabis, cannabis products, and related supplies as will be 2 conducted at the proposed facility. 3 Notwithstanding any other provision of this subsection, an 4 application shall be disqualified from consideration unless it 5 includes documentation demonstrating that the applicant will have 6 final control of the premises upon approval of the application, 7 including, but not limited to, a lease agreement, contract for sale, 8 title, deed, or similar documentation. In addition, if the applicant 9 will lease the premises, the application will be disqualified from 10 consideration unless it includes certification from the landlord that 11 the landlord is aware that the tenant’s use of the premises will 12 involve activities related to the cultivation, manufacturing, or 13 dispensing of medical cannabis and medical cannabis products. An 14 application shall not be disqualified from consideration if the 15 application does not include the materials described in 16 subparagraphs (b) or (c) of this paragraph. 17 (5) A community impact, social responsibility, and research 18 statement, which may include, but shall not be limited to, the 19 following: 20 (a) a community impact plan summarizing how the applicant 21 intends to have a positive impact on the community in which the 22 proposed entity is to be located, which shall include an economic 23 impact plan, a description of outreach activities, and any financial 24 assistance or discount plans the applicant will provide to qualifying 25 patients and designated caregivers; 26 (b) a written description of the applicant’s record of social 27 responsibility, philanthropy, and ties to the proposed host 28 community; 29 (c) a written description of any research the applicant has 30 conducted on the medical efficacy or adverse 31 use and the applicant’s participation in or support of cannabis- 32 related research and educational activities; and 33 (d) a written plan describing any research and development 34 regarding the medical efficacy or adverse effects of cannabis, and 35 any cannabis-related educational and outreach activities, which the 36 applicant intends to conduct if issued a permit by the commission. 37 In evaluating the information submitted pursuant to 38 subparagraphs (b) and (c) of this paragraph, the commission shall 39 afford the greatest weight to the experience of the applicant itself, 40 controlling owners, and entities with common ownership or control 41 with the applicant; followed by the experience of those with a 15 42 percent or greater ownership interest in the applicant’s organization; 43 followed by interest holders in the applicant’s organization; 44 followed by other officers, directors, and bona fide full-time 45 employees of the applicant as of the submission date of the 46 application. 47 (6) A workforce development and job creation plan, which may 48 include, but shall not be limited to a description of the applicant’s

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1 workforce development and job creation plan, which may include 2 information on the applicant’s history of job creation and planned 3 job creation at the proposed facility; education, training, and 4 resources to be made available for employees; any relevant 5 certifications; and an optional diversity plan. 6 (7) A business and financial plan, which may include, but shall 7 not be limited to, the following: 8 (a) an executive summary of the applicant’s business plan; 9 (b) a demonstration of the applicant’s financial ability to 10 implement its business plan, which may include, but shall not be 11 limited to, bank statements, business and individual financial 12 statements, net worth statements, and debt and equity financing 13 statements; and 14 (c) a description of the applicant’s experience complying with 15 guidance pertaining to cannabis issued by the Financial Crimes 16 Enforcement Network under 31 U.S.C. s.5311 et seq., the federal 17 “Bank Secrecy Act”, which may be demonstrated by submitting 18 letters regarding the applicant’s banking history from banks or 19 credit unions that certify they are aware of the business activities of 20 the applicant, or entities with common ownership or control of the 21 applicant’s organization, in any state where the applicant has 22 operated a business related to medical cannabis. For the purposes 23 of this subparagraph, the commission shall consider only bank 24 references involving accounts in the name of the applicant or of an 25 entity with common ownership or control of the applicant’s 26 organization. An applicant who does not submit the information 27 described in this subparagraph shall not be disqualified from 28 consideration. 29 (8) Whether any of the applicant’s majority or controlling 30 owners were previously approved by the commission to serve as an 31 officer, director, principal, or key employee of an alternative 32 treatment center, provided any such individual served in that 33 capacity at the alternative treatment center for six or more months. 34 (9) Whether the applicant can demonstrate that its governance 35 structure includes the involvement of a school of medicine or 36 osteopathic medicine licensed and accredited in the United States, 37 or a general acute care hospital, ambulatory care facility, adult day 38 care services program, or pharmacy licensed in New Jersey, 39 provided that: 40 (a) the school, hospital, facility, or pharmacy has conducted or 41 participated in research approved by an institutional review board 42 related to cannabis involving the use of human subjects, except in 43 the case of an accredited school of medicine or osteopathic 44 medicine that is located and licensed in New Jersey; 45 (b) the school, hospital, facility, or pharmacy holds a profit 46 share or ownership interest in the applicant’s organization of 10 47 percent or more, except in the case of an accredited school of

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1 medicine or osteopathic medicine that is located and licensed in 2 New Jersey; and 3 (c) the school, hospital, facility, or pharmacy participates in 4 major decision-making activities within the applicant’s 5 organization, which may be demonstrated by representation on the 6 board of directors of the applicant’s organization. 7 (10) The proposed composition of the applicant’s medical 8 advisory board established pursuant to section 15 of P.L. , 9 c. (C. ) (pending before the Legislature as this bill), if any. 10 (11) Any other information the commission deems relevant in 11 determining whether to grant a permit to the applicant. 12 e. In reviewing an initial permit application, unless the 13 information is otherwise solicited by the commission in a specific 14 application question, the commission’s evaluation of the application 15 shall be limited to the experience and qualifications of the 16 applicant’s organization, including any entities with common 17 ownership or control of the applicant’s organization, controlling 18 owners or interest holders in the applicant’s organization, and the 19 officers, directors, and current full-time existing employees of the 20 applicant’s organization. Responses pertaining to consultants, 21 independent contractors, applicants who are exempt from the 22 criminal history record background check requirements of section 7 23 of P.L.2009, c.307 (C.24:6I-7), and prospective or part-time 24 employees of the entity shall not be considered. Each applicant 25 shall certify as to the status of the individuals and entities included 26 in the application. 27 f. The commission shall conduct a disparity study to determine 28 whether race-based measures should be considered when issuing 29 permits pursuant to this section, and shall incorporate the policies, 30 practices, protocols, standards, and criteria developed by the Office 31 of Minority, Disabled Veterans, and Women Medical Cannabis 32 Business Development pursuant to section 32 of P.L. , c. (C. 33 ) (pending before the Legislature as this bill) to promote 34 participation in the medical cannabis industry by persons from 35 socially and economically disadvantaged communities, including 36 promoting applications for, and the issuance of, medical cannabis 37 cultivator, medical cannabis manufacturer, and medical cannabis 38 dispensary permits to certified minority, women’s, and disabled 39 veterans’ businesses. To this end, the commission shall require that 40 at least 30 percent of the total number of new medical cannabis 41 cultivator permits, medical cannabis manufacturer permits, and 42 medical cannabis dispensary permits issued on or after the effective 43 date of P.L. , c. (C. ) (pending before the Legislature as this 44 bill) are issued as follows: 45 (1) at least 15 percent of the total number of new medical 46 cannabis cultivator permits, medical cannabis manufacturer 47 permits, and medical cannabis dispensary permits issued on or after 48 the effective date of P.L. , c. (C. ) (pending before the

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1 Legislature as this bill) shall be issued to a qualified applicant that 2 has been certified as a minority business pursuant to P.L.1986, 3 c.195 (C.52:27H-21.18 et seq.); and 4 (2) at least 15 percent of the total number of new medical 5 cannabis cultivator permits, medical cannabis manufacturer 6 permits, and medical cannabis dispensary permits issued on or after 7 the effective date of P.L. , c. (C. ) (pending before the 8 Legislature as this bill) shall be issued to a qualified applicant that 9 has been certified as a women’s business pursuant to P.L.1986, 10 c.195 (C.52:27H-21.18 et seq.) or that is a disabled-veterans’ 11 business, as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2). 12 In selecting among applicants who meet these criteria, the 13 commission shall grant a higher preference to applicants with up to 14 two of the certifications described in this subsection. 15 g. The commission shall give special consideration to any 16 applicant that has entered into an agreement with an institution of 17 higher education to create an integrated curriculum involving the 18 cultivation, manufacturing, and dispensing of medical cannabis, 19 provided that the curriculum is approved by both the commission 20 and the Office of the Secretary of Higher Education and the 21 applicant agrees to maintain the integrated curriculum in perpetuity. 22 An integrated curriculum permit shall be subject to revocation if the 23 IC permit holder fails to maintain or continue the integrated 24 curriculum. In the event that, because of circumstances outside an 25 IC permit holder’s control, the IC permit holder will no longer be 26 able to continue an integrated curriculum, the IC permit holder shall 27 notify the commission and shall make reasonable efforts to establish 28 a new integrated curriculum with an institution of higher education, 29 subject to approval by the commission and the Office of the 30 Secretary of Higher Education. If the IC permit holder is unable to 31 establish a new integrated curriculum within six months after the 32 date the current integrated curriculum arrangement ends, the 33 commission shall revoke the entity’s IC permit, unless the 34 commission finds there are extraordinary circumstances that justify 35 allowing the permit holder to retain the permit without an integrated 36 curriculum and the commission finds that allowing the permit 37 holder to retain the permit would be consistent with the purposes of 38 P.L.2009, c.307 (C.24:6I-1 et al.), in which case the IC permit shall 39 convert to a regular permit of the same type. The commission may 40 revise the application and permit fees or other conditions for an IC 41 permit as may be necessary to encourage applications for IC 42 permits. 43 h. Application materials submitted to the commission pursuant 44 to this section shall not be considered a public record pursuant to 45 P.L.1963, c.73 (C.47:1A-1 et seq.) or P.L.2001, c.404 (C.47:1A-5 et 46 al.). 47 i. If the commission notifies an applicant that it has performed 48 sufficiently well on multiple applications to be awarded more than

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1 one medical cannabis cultivator permit, more than one medical 2 cannabis manufacturer permit, or more than one medical cannabis 3 dispensary permit by the commission, the applicant shall notify the 4 commission, within seven business days after receiving such notice, 5 as to which permit it will accept. For any permit award declined by 6 an applicant pursuant to this subsection, the commission shall, upon 7 receiving notice from the applicant of the declination, award the 8 permit to the applicant for that permit type who, in the 9 determination of the commission, best satisfies the commission’s 10 criteria while meeting the commission’s determination of Statewide 11 need. If an applicant fails to notify the commission as to which 12 permit it will accept, the commission shall have the discretion to 13 determine which permit it will award to the applicant, based on the 14 commission’s determination of Statewide need and other 15 applications submitted for facilities to be located in the affected 16 regions. 17 18 13. (New section) a. The commission shall issue clinical 19 registrant permits to qualified applicants that meet the requirements 20 of this section. In addition to any other requirements as the 21 commission establishes by regulation regarding application for and 22 issuance of a clinical registrant permit, each clinical registrant 23 applicant shall: 24 (1) complete a criminal history record background check that 25 meets the requirements of subsection d. of section 7 of P.L.2009, 26 c.307 (C.24:6I-7); 27 (2) submit to the commission any required application and 28 permit fees; 29 (3) submit to the commission written documentation of an 30 existing contract with an academic medical center that meets the 31 requirements of subsection c. of this section; and 32 (4) submit to the commission documentation that the applicant 33 has a minimum of $15 million in capital. 34 b. The commission shall, no later than 90 days after the 35 effective date of P.L. , c. (C. ) (pending before the 36 Legislature as this bill) or upon adoption of rules and regulations as 37 provided in subsection c. of section 18 of P.L.2009, c.307 (C.24:6I- 38 16), whichever occurs first, begin accepting and processing 39 applications for four clinical registrant permits. Thereafter, the 40 commission shall accept applications for and issue such additional 41 clinical registrant permits as it determines to be necessary and 42 consistent with the provisions of P.L.2009, c.307 (C.24:6I-1 et al.). 43 The commission shall make a determination as to a clinical 44 registrant permit application no later than 90 days after receiving 45 the application, which may include a determination that the 46 commission reasonably requires more time to adequately review the 47 application. In reviewing and approving applications for clinical 48 registrant permits, the commission shall seek to incorporate the

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1 policies, practices, protocols, standards, and criteria developed by 2 the Office of Minority, Disabled Veterans, and Women Medical 3 Cannabis Business Development pursuant to section 32 of P.L. , 4 c. (C. ) (pending before the Legislature as this bill) to 5 promote participation in the medical cannabis industry by persons 6 from socially and economically disadvantaged communities. 7 c. A contract between a clinical registrant and an academic 8 medical center shall include a commitment by the academic medical 9 center, or its affiliate, to engage in clinical research related to the 10 use of medical cannabis in order to advise the clinical registrant 11 concerning patient health and safety, medical applications, and 12 dispensing and management of controlled substances, among other 13 areas. A clinical registrant issued a permit pursuant to this section 14 shall have a written contractual relationship with no more than one 15 academic medical center. 16 d. A clinical registrant issued a permit pursuant to this section 17 shall be authorized to engage in all conduct involving the 18 cultivation, processing, and dispensing of medical cannabis as is 19 authorized for an entity holding medical cannabis cultivator, 20 medical cannabis manufacturer, and medical cannabis dispensary 21 permits pursuant to P.L.2009, c.307 (C.24:6I-1 et al.), including 22 dispensing medical cannabis and medical cannabis products to 23 qualifying patients and designated and institutional caregivers. The 24 clinical registrant shall additionally be authorized to engage in 25 clinical research involving medical cannabis using qualifying 26 patients who consent to being part of such research, subject to any 27 restrictions established by the commission. 28 e. (1) A clinical registrant issued a permit pursuant to this 29 section may conduct authorized activities related to medical 30 cannabis at more than one physical location, provided that each 31 location is approved by the commission and is in the same region in 32 which the academic medical center with which the clinical 33 registrant has a contract is located. 34 (2) A clinical registrant may apply to the commission for 35 approval to relocate an approved facility to another location in the 36 same region, which application shall be approved unless the 37 commission makes a specific determination that the proposed 38 relocation would be inconsistent with the purposes of P.L.2009, 39 c.307 (C.24:6I-1 et al.). The denial of an application for relocation 40 submitted pursuant to this paragraph shall be considered a final 41 agency decision, subject to review by the Appellate Division of the 42 Superior Court. 43 (3) The commission may authorize a clinical registrant to 44 dispense medical cannabis and medical cannabis products from 45 more than one physical location if the commission determines that 46 authorizing additional dispensing locations is necessary for the 47 clinical registrant to best serve and treat qualifying patients and 48 clinical trial participants.

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1 f. A clinical registrant permit shall not be sold or transferred to 2 any other entity. 3 g. Clinical registrant permits shall be valid for the term of the 4 contractual relationship between the academic medical center and 5 the clinical registrant. The commission may renew a clinical 6 registrant permit to correspond to any renewal of the contractual 7 relationship between the academic medical center and the clinical 8 registrant. 9 h. Each clinical registrant shall submit the results of the clinical 10 research obtained through an approved clinical registrant permit to 11 the commission no later than one year following the conclusion of 12 the research study or publication of the research study in a peer- 13 reviewed medical journal. Nothing in this subsection shall be 14 deemed to require the disclosure of any clinical research that would 15 infringe on the intellectual property of the clinical registrant or on 16 the confidentiality of patient information. 17 i. Application materials submitted to the commission pursuant 18 to this section shall not be considered a public record pursuant to 19 P.L.1963, c.73 (C.47:1A-1 et seq.) or P.L.2001, c.404 (C.47:1A-5 et 20 al.). 21 22 14. (New section) a. (1) The commission shall, no later than 23 18 months after the effective date of P.L. , c. (C. ) (pending 24 before the Legislature as this bill), and every three years thereafter, 25 conduct a feasibility study concerning the potential for establishing 26 a cannabis research and development permit type. In order to 27 advance scientific and medical understanding concerning the 28 potential uses of medical cannabis, and to ensure ongoing quality 29 control in the collection of data and the aggregation of clinical, 30 translational, and other research, the feasibility study shall assess 31 the medical cannabis market and industry, current perspectives in 32 the scientific and medical communities on medical cannabis, as well 33 as those of other relevant disciplines, to determine the potential 34 benefits of establishing a research and development permit type. 35 Any cannabis research and development permit established by the 36 commission shall be limited to advancing the use of cannabis as 37 medicine, improving the lives of current registered qualifying 38 patients as well as future patients who could derive therapeutic 39 benefit from the use of cannabis, and furthering the knowledge of 40 cannabis in the scientific and medical communities. 41 (2) The commission shall additionally assess the feasibility of 42 securing State funding to support the award of a monetary grant in 43 conjunction with the issuance of a cannabis research and 44 development permit to a successful applicant, following a 45 competitive application process, as well as assess potential future 46 regulations to apply to any cannabis research and development 47 permits that are supported by private investment.

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1 (3) Each feasibility study conducted pursuant to this subsection 2 shall include at least one public hearing, at which the commission 3 shall receive testimony from interested members of the public. 4 (4) The commission shall submit a report of its findings and 5 conclusions to the Governor and, pursuant to section 2 of P.L.1991, 6 c.164 (C.52:14-19.1), to the Legislature, within 90 days following 7 the conclusion of each feasibility study. 8 b. The requirement to complete a feasibility study pursuant to 9 subsection a. of this section shall expire at such time as the 10 commission establishes a cannabis research and development permit 11 type and promulgates rules and regulations with regard to the 12 permit pursuant to the “Administrative Procedure Act,” P.L.1968, 13 c.410 (C.52:14B-1 et seq.). 14 c. The commission may establish, by regulation, such 15 additional permit types in connection with medical cannabis as the 16 commission deems necessary and appropriate to maximize the 17 effectiveness and efficiency of the State medical cannabis program 18 and meet the needs of qualifying patients, health care practitioners, 19 medical cannabis cultivators, medical cannabis manufacturers, 20 medical cannabis dispensaries, and related entities. Such permits 21 may include, but shall not be limited to, permits authorizing 22 pharmacy practice sites licensed pursuant to P.L.2003, c.280 23 (C.45:14-40 et seq.) to be authorized to dispense medical cannabis 24 to qualifying patients and their designated and institutional 25 caregivers. 26 27 15. (New section) a. A medical cannabis cultivator, medical 28 cannabis manufacturer, medical cannabis dispensary, or clinical 29 registrant may appoint a medical advisory board to provide advice 30 to the medical cannabis cultivator, medical cannabis manufacturer, 31 medical cannabis dispensary, or clinical registrant on all aspects of 32 its business. 33 b. A medical advisory board appointed pursuant to this section 34 shall comprise five members: three health care practitioners 35 licensed or certified to practice in New Jersey; one qualifying 36 patient who resides in the same area in which the medical cannabis 37 cultivator, medical cannabis manufacturer, medical cannabis 38 dispensary, or clinical registrant is located; and one individual who 39 owns a business in the same area in which the medical cannabis 40 cultivator, medical cannabis manufacturer, medical cannabis 41 dispensary, or clinical registrant is located. No owner, director, 42 officer, or employee of a medical cannabis cultivator, medical 43 cannabis manufacturer, medical cannabis dispensary, or clinical 44 registrant may serve on a medical advisory board. The membership 45 of a medical advisory board shall be subject to commission 46 approval. 47 c. A medical advisory board appointed pursuant to this section 48 shall meet at least two times per calendar year.

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1 16. (New section) a. (1) An organization issued a permit to 2 operate a medical cannabis cultivator, medical cannabis 3 manufacturer, medical cannabis dispensary, or clinical registrant 4 shall not be eligible for a State or local economic incentive. 5 (2) The issuance of a permit to operate a medical cannabis 6 cultivator, medical cannabis manufacturer, cannabis dispensary, or 7 clinical registrant to an organization that has been awarded a State 8 or local economic incentive shall invalidate the right of the 9 organization to benefit from the economic incentive as of the date 10 of issuance of the permit, except that an academic medical center 11 that has entered into a contractual relationship with a clinical 12 registrant shall not have any right to benefit from an economic 13 incentive invalidated pursuant to this paragraph on the basis of that 14 contractual relationship. 15 b. (1) A property owner, developer, or operator of a project to 16 be used, in whole or in part, as a medical cannabis cultivator, 17 medical cannabis manufacturer, medical cannabis dispensary, or 18 clinical registrant shall not be eligible for a State or local economic 19 incentive during the period of time that the economic incentive is in 20 effect. 21 (2) The issuance of a permit to operate a medical cannabis 22 cultivator, medical cannabis manufacturer, medical cannabis 23 dispensary, or clinical registrant at a location that is the subject of a 24 State or local economic incentive shall invalidate the right of a 25 property owner, developer, or operator to benefit from the economic 26 incentive as of the date of issuance of the permit, except that an 27 academic medical center that has entered into a contractual 28 relationship with a clinical registrant shall not have any right to 29 benefit from an economic incentive invalidated pursuant to this 30 paragraph on the basis of that contractual relationship. 31 c. As used in this section: 32 "Business" means any non-governmental person, association, 33 for-profit or non-profit corporation, venture, limited liability 34 company, partnership, sole proprietorship, or other form of business 35 organization or entity. 36 "Governmental entity" means the State, a local unit of 37 government, or a State or local government agency or authority. 38 "State or local economic incentive" means a financial incentive, 39 awarded by a governmental entity to a business, or agreed to 40 between a governmental entity and a business, for the purpose of 41 stimulating economic development or redevelopment in New 42 Jersey, including, but not limited to, a bond, grant, loan, loan 43 guarantee, matching fund, tax credit, or other tax expenditure. 44 "Tax expenditure" means the amount of foregone tax collections 45 due to any abatement, reduction, exemption, credit, or transfer 46 certificate against any State or local tax.

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1 17. Section 8 of P.L.2009, c.307 (C.24:6I-8) is amended to read 2 as follows: 3 8. The provisions of [this act] P.L.2009, c.307 (C.24:6I-1 et 4 al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.) shall not be 5 construed to permit a person to: 6 a. operate, navigate, or be in actual physical control of any 7 vehicle, aircraft, railroad train, stationary heavy equipment or vessel 8 while under the influence of [marijuana] cannabis; or 9 b. smoke [marijuana] cannabis in a school bus or other form of 10 public transportation, in a private vehicle unless the vehicle is not in 11 operation, on any school grounds, in any correctional facility, at any 12 public park or beach, at any recreation center, or in any place where 13 smoking is prohibited pursuant to N.J.S.2C:33-13. 14 A person who commits an act as provided in this section shall be 15 subject to such penalties as are provided by law. 16 (cf: P.L.2009, c.307, c.8) 17 18 18. Section 10 of P.L.2009, c.307 (C.24:6I-10) is amended to 19 read as follows: 20 10. a. A [physician] health care practitioner shall provide 21 written instructions for a registered qualifying patient or [his] the 22 patient’s designated caregiver, or an institutional caregiver acting 23 on behalf of the patient, to present to [an alternative treatment 24 center] a medical cannabis dispensary or a clinical registrant 25 concerning the total amount of usable [marijuana] cannabis that a 26 patient may be dispensed, in weight, in a 30-day period, which 27 amount shall not exceed [two ounces. If no amount is noted, the 28 maximum amount that may be dispensed at one time is two ounces] 29 the maximum amount that may be authorized for the patient 30 pursuant to subsection f. of this section. 31 b. A [physician] health care practitioner may issue multiple 32 written instructions at one time authorizing the patient to receive a 33 total of up to a [90-day] one year supply, provided that the 34 following conditions are met: 35 (1) Each separate set of instructions shall be issued for a 36 legitimate medical purpose by the [physician] health care 37 practitioner, as provided in [this act] P.L.2009, c.307 (C.24:6I- 38 1 et al.); 39 (2) Each separate set of instructions shall indicate the earliest 40 date on which a [center] dispensary or clinical registrant may 41 dispense the [marijuana] cannabis, except for the first dispensation 42 if it is to be filled immediately; and 43 (3) The [physician] health care practitioner has determined that 44 providing the patient with multiple instructions in this manner does 45 not create an undue risk of diversion or abuse.

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1 c. A registered qualifying patient or [his primary] the patient’s 2 designated caregiver, or an institutional caregiver acting on behalf 3 of a qualifying patient, shall present verification of the patient's or 4 caregiver's [registry identification card] registration with the 5 commission, as applicable, and these written instructions to [the 6 alternative treatment center] any medical cannabis dispensary or 7 clinical registrant, which shall verify and log the documentation 8 presented. An institutional caregiver shall additionally present an 9 authorization executed by the patient certifying that the institutional 10 caregiver is authorized to obtain medical cannabis on behalf of the 11 patient. A [physician] health care practitioner may provide a copy 12 of a written instruction by electronic or other means, as determined 13 by the [commissioner] executive director, directly to [an 14 alternative treatment center] a medical cannabis dispensary or a 15 clinical registrant on behalf of a registered qualifying patient. The 16 dispensation of [marijuana] medical cannabis pursuant to any 17 written instructions shall occur within one month of the date that 18 the instructions were written or become eligible for dispensing, 19 whichever is later, or the instructions are void. 20 d. [A patient may be registered at only one alternative 21 treatment center at any time.] (deleted by amendment, P.L. , c. ) 22 (pending before the Legislature as this bill) 23 e. Prior to dispensing medical cannabis to a qualifying patient, 24 the patient’s designated caregiver, or an institutional caregiver, the 25 medical cannabis dispensary or clinical registrant shall access the 26 system established pursuant to section 11 of P.L.2009, c.307 27 (C.45:1-45.1) to ascertain whether medical cannabis was dispensed 28 for the patient by any medical cannabis dispensary or clinical 29 registrant within the preceding 30 days. Upon dispensing medical 30 cannabis to a qualifying patient, the patient’s designated caregiver, 31 or an institutional caregiver, the medical cannabis dispensary or 32 clinical registrant shall transmit to the patient’s health care 33 practitioner information concerning the amount, strain, and form of 34 medical cannabis that was dispensed. 35 f. (1) Except as provided in paragraph (2) of this subsection, 36 the maximum amount of usable cannabis that a patient may be 37 dispensed, in weight, in a 30-day period, shall be: 38 (a) until July 1, 2020, three ounces in dried form or the 39 equivalent amount in any other form; and 40 (b) on or after July 1, 2020 four ounces in dried form or the 41 equivalent amount in any other form. 42 (2) The monthly limits set forth in paragraph (1) of this 43 subsection shall not apply to patients who are terminally ill or who 44 are currently receiving hospice care through a licensed hospice, 45 which patients may be dispensed an unlimited amount of medical 46 cannabis. Qualifying patients who are not receiving hospice care or 47 who are not terminally ill may petition the commission, on a form

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1 and in a manner as the commission shall require by regulation, for 2 an exemption from the monthly limits set forth in paragraph (1) of 3 this paragraph, which petition the commission shall approve if the 4 commission finds that granting the exemption is necessary to meet 5 the patient’s treatment needs and is consistent with the provisions of 6 P.L.2009, c.307 (C.24:6I-1 et al.). 7 g. The executive director shall establish, by regulation, 8 curricula for health care practitioners and for staff at medical 9 cannabis dispensaries and clinical registrants: 10 (1) The curriculum for health care practitioners shall be 11 designed to assist practitioners in counseling patients with regard to 12 the quantity, dosing, and administration of medical cannabis as 13 shall be appropriate to treat the patient’s qualifying medical 14 condition. Health care practitioners shall complete the curriculum 15 as a condition of authorizing patients for the medical use of 16 cannabis; and 17 (2) The curriculum for employees of medical cannabis 18 dispensaries and clinical registrants shall be designed to assist the 19 employees in counseling patients with regard to determining the 20 strain and form of medical cannabis that is appropriate to treat the 21 patient’s qualifying medical condition. Employees of medical 22 cannabis dispensaries and clinical registrants shall be required to 23 complete the curriculum as a condition of registration with the 24 commission. Completion of the curriculum may constitute part of 25 the annual training required pursuant to paragraph (1) of subsection 26 j. of section 7 of P.L.2009, c.307 (C.24:6I-7). 27 h. Commencing July 1, 2020, the amount of the sales tax that 28 may be imposed under the "Sales and Use Tax Act," P.L.1966, c.30 29 (C.54:32B-1 et seq.) on medical cannabis dispensed by a medical 30 cannabis dispensary or clinical registrant shall not exceed four 31 percent. 32 Commencing July 1, 2021, the amount of the sales tax that may 33 be imposed under the "Sales and Use Tax Act," P.L.1966, c.30 34 (C.54:32B-1 et seq.) on medical cannabis dispensed by a medical 35 cannabis dispensary or clinical registrant shall not exceed two 36 percent. 37 Commencing July 1, 2022, medical cannabis dispensed by a 38 medical cannabis dispensary or clinical registrant shall not be 39 subject to any tax imposed under the "Sales and Use Tax Act," 40 P.L.1966, c.30 (C.54:32B-1 et seq.). 41 Any revenue collected pursuant to a tax imposed on the sale of 42 medical cannabis under the “Sales and Use Tax Act,” P.L.1966, 43 c.30 (C.54:32B-1 et seq.), shall be exclusively appropriated to 44 programs for the treatment of mental health and substance use 45 disorders. 46 (cf: P.L.2009, c.307, s.10)

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1 19. Section 13 of P.L.2009, c.307 (C.24:6I-11) is amended to 2 read as follows: 3 13. a. The [commissioner] executive director may accept 4 from any governmental department or agency, public or private 5 body or any other source grants or contributions to be used in 6 carrying out the purposes of [this act] P.L.2009, c.307 (C.24:6I-1 7 et al.). 8 b. All fees collected pursuant to [this act] P.L.2009, c.307 9 (C.24:6I-1 et al.), including those from qualifying patients, 10 designated and institutional caregivers, and [alternative treatment 11 centers'] initial, modification and renewal applications for 12 alternative treatment centers, including medical cannabis 13 cultivators, medical cannabis manufacturers, medical cannabis 14 dispensaries, and clinical registrants, shall be used to offset the cost 15 of the [department's] commission’s administration of the 16 provisions of [this act] P.L.2009, c.307 (C.24:6I-1 et al.). 17 (cf: P.L.2009, c.307, s.13) 18 19 20. Section 14 of P.L.2009, c.307 (C.24:6I-12) is amended to 20 read as follows: 21 14. a. The commissioner, or after the effective date of 22 P.L. , c. (C. ) (pending before the Legislature as this bill), the 23 executive director, shall report to the Governor, and to the 24 Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1): 25 (1) no later than one year after the effective date of [this act] 26 P.L.2009, c.307 (C.24:6I-1 et al.), on the actions taken to 27 implement the provisions of [this act] P.L.2009, c.307 (C.24:6I- 28 1 et al.); and 29 (2) annually thereafter on the number of applications for 30 [registry identification cards] registration with the commission, the 31 number of qualifying patients registered, the number of [primary] 32 designated and institutional caregivers registered, the nature of the 33 [debilitating] qualifying medical conditions of the patients, the 34 number of [registry identification cards] registrations revoked, the 35 number of [alternative treatment center] medical cannabis 36 cultivator, medical cannabis manufacturer, and medical cannabis 37 dispensary permits issued and revoked, the number and type of 38 integrated curricula approved, established, and maintained in 39 connection with an IC permit, the number of testing laboratories 40 licensed, the number of clinical registrant permits issued and the 41 nature of the clinical research conducted by each clinical registrant, 42 any incidents of diversion of medical cannabis, information 43 concerning racial, ethnic, disabled veteran, and gender diversity in 44 the individuals issued and currently holding permits issued by the 45 commission, the number of permit applications received from 46 businesses owned by minorities, disabled veterans, and women and 47 the number of such applications that were approved, the business

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1 development initiatives undertaken by the Office of Minority, 2 Disabled Veterans, and Women Medical Cannabis Business 3 Development pursuant to section 32 of P.L. , c. (C. ) 4 (pending before the Legislature as this bill) and the outcomes or 5 effects of those initiatives, statistics concerning arrests for drug 6 offenses throughout the State and in areas where medical cannabis 7 dispensaries are located, including information concerning racial 8 disparities in arrest rates for drug offenses generally and cannabis 9 offenses in particular, and the number of [physicians providing 10 certifications for] health care practitioners authorizing patients for 11 the medical use of cannabis, including the types of license or 12 certification held by those practitioners. 13 b. The reports shall not contain any identifying information of 14 patients, caregivers, or [physicians] health care practitioners. 15 c. Within two years after the effective date of [this act] 16 P.L.2009, c.307 (C.24:6I-1 et al.) and every two years thereafter, 17 the commissioner or, after the effective date of 18 P.L. , c. (C. ) (pending before the Legislature as this bill), 19 the executive director, shall: evaluate whether there are sufficient 20 numbers of [alternative treatment centers] medical cannabis 21 cultivators, medical cannabis manufacturers, medical cannabis 22 dispensaries, and clinical registrants to meet the needs of registered 23 qualifying patients throughout the State; evaluate whether the 24 maximum amount of medical [marijuana] cannabis allowed 25 pursuant to [this act] P.L.2009, c.307 (C.24:6I-1 et al.) is sufficient 26 to meet the medical needs of qualifying patients; and determine 27 whether any [alternative treatment center] medical cannabis 28 cultivator, medical cannabis manufacturer, medical cannabis 29 dispensary, or clinical registrant has charged excessive prices [for 30 marijuana] in connection with medical cannabis [that the center 31 dispensed]. 32 The commissioner or, after the effective date of 33 P.L. , c. (C. ) (pending before the Legislature as this bill), 34 the executive director, shall report his findings no later than two 35 years after the effective date of [this act] P.L.2009, c.307 (C.24:6I- 36 1 et al.), and every two years thereafter, to the Governor, and to the 37 Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). 38 (cf: P.L.2009, c.307, s.14) 39 40 21. Section 15 of P.L.2009, c.307 (C.24:6I-13) is amended to 41 read as follows: 42 15. a. The [Department of Health] Cannabis Regulatory 43 Commission is authorized to exchange fingerprint data with, and 44 receive information from, the Division of State Police in the 45 Department of Law and Public Safety and the Federal Bureau of 46 Investigation for use in reviewing applications for individuals 47 [seeking] who are required to complete a criminal history record

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1 background check in connection with applications to serve as 2 [primary] designated caregivers or institutional caregivers pursuant 3 to section 4 of P.L.2009, c.307 (C.24:6I-4), for licenses to operate 4 as, or to be a director, officer, or employee of, medical cannabis 5 testing laboratories pursuant to section 25 of P.L. , c. (C. ) 6 (pending before the Legislature as this bill), for permits to operate 7 as, or to be a director, officer, or employee of , or an investor in, 8 clinical registrants pursuant to section 13 of P.L. , c. (C. ) 9 (pending before the Legislature as this bill), and for permits to 10 operate as, or to be a director, officer, or employee of, [alternative 11 treatment centers] , or an investor in, medical cannabis cultivators, 12 medical cannabis manufacturers, and medical cannabis dispensaries 13 pursuant to section 7 of P.L.2009, c.307 (C.24:6I-7). 14 b. The Division of State Police shall promptly notify the 15 [Department of Health] Cannabis Regulatory Commission in the 16 event an applicant seeking to serve as a [primary] designated or 17 institutional caregiver, an applicant for a license to operate as, or to 18 be a director, officer, or employee of, a medical cannabis testing 19 laboratory, an applicant for a permit to operate as, or to be a 20 director, officer, or employee of, or an investor in, a clinical 21 registrant, or an applicant for a permit to operate as, or to be a 22 director, officer, or employee of, [an alternative treatment center] 23 or an investor in, a medical cannabis cultivator, medical cannabis 24 manufacturer, or medical cannabis dispensary, who was the subject 25 of a criminal history record background check conducted pursuant 26 to subsection a. of this section, is convicted of a crime involving 27 possession or sale of a controlled dangerous substance. 28 (cf: P.L.2012, c.17, s.91) 29 30 22. Section 16 of P.L.2009, c.307 (C.24:6I-14) is amended to 31 read as follows: 32 16. Nothing in [this act] P.L.2009, c.307 (C.24:6I-1 et al.) or 33 P.L.2015, c.158 (C.18A:40-12.22 et al.) shall be construed to: 34 a. require a government medical assistance program or private 35 health insurer to reimburse a person for costs associated with the 36 medical use of [marijuana, or an employer to accommodate the 37 medical use of marijuana in any workplace] cannabis; 38 b. restrict or otherwise affect the distribution, sale, prescribing, 39 and dispensing of any product that has been approved for marketing 40 as a prescription drug or device by the federal Food and Drug 41 Administration; or 42 c. prohibit a person or entity that owns or controls a property, 43 including a casino hotel facility as defined in section 19 of 44 P.L.1977, c.110 (C.5:12-19), from prohibiting or otherwise 45 regulating the possession, consumption, or use, of medical cannabis 46 on or in that property, including a hotel property that is a casino 47 hotel facility as defined in section 19 of P.L.1977, c.110 (C.5:12-

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1 19), a casino as defined in section 6 of P.L.1977, c.110 (C.5:12-6), 2 or casino simulcasting facility authorized pursuant to the “Casino 3 Simulcasting Act,” P.L.1992, c.19 (C.5:12-191 et al.), provided that 4 a person or entity that owns or controls multifamily housing that is 5 a multiple dwelling as defined in section 3 of P.L.1967, c.76 6 (C.55:13A-3), a unit of a condominium as defined in section 3 of 7 P.L.1969, c.257 (C.46:8B-3), or a site in a mobile home park as 8 defined in section 3 of P.L.1983, c.386 (C.40:55D-102), which site is 9 leased to the owner of a manufactured home, as defined in that section, 10 that is installed thereon, may only prohibit or otherwise regulate the 11 smoking, but not other consumption, of medical cannabis. 12 (cf: P.L.2009, c.307, s.16) 13 14 23. Section 18 of P.L.2009, c.307 (C.24:6I-16) is amended to 15 read as follows: 16 18. a. Pursuant to the "Administrative Procedure Act," 17 P.L.1968, c.410 (C.52:14B-1 et seq.), the commissioner or, after the 18 effective date of P.L. , c. (C. ) (pending before the 19 Legislature as this bill), the executive director, shall promulgate 20 rules and regulations to effectuate the purposes of [this act] 21 P.L.2009, c.307 (C.24:6I-1 et al.), in consultation with the 22 Department of Law and Public Safety. 23 b. Notwithstanding any provision of P.L.1968, c.410 24 (C.52:14B-1 et seq.) to the contrary, the commissioner shall adopt, 25 immediately upon filing with the Office of Administrative Law and 26 no later than the 90th day after the effective date of [this act] 27 P.L.2009, c.307 (C.24:6I-1 et al.), such regulations as the 28 commissioner deems necessary to implement the provisions of [this 29 act] P.L.2009, c.307 (C.24:6I-1 et al.). Regulations adopted 30 pursuant to this subsection shall be effective until the adoption of 31 rules and regulations pursuant to subsection a. of this section and 32 may be amended, adopted, or readopted by the commissioner in 33 accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 34 et seq.). 35 c. No later than 90 days after the effective date of 36 P.L. , c. (C. ) (pending before the Legislature as this bill), 37 the executive director shall promulgate rules and regulations to 38 effectuate the purposes of P.L. , c. (C. ) (pending before the 39 Legislature as this bill). Rules and regulations adopted pursuant to 40 this subsection shall, at a minimum: 41 (1) Specify the number of new medical cannabis cultivator, 42 medical cannabis manufacturer, and medical cannabis dispensary 43 permits the commission will issue in the first year next following 44 the effective date of P.L. , c. (C. ) (pending before the 45 Legislature as this bill); and 46 (2) Establish recommended dosage guidelines for medical 47 cannabis in each form available to qualifying patients that are 48 equivalent to one ounce of medical cannabis in dried form. The

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1 executive director shall periodically review and update the dosage 2 guidelines as appropriate, including to establish dosage guidelines 3 for new forms of medical cannabis that become available. 4 d. The commission may convene a task force comprised of 5 individuals with expertise in matters pertaining to the medical 6 cannabis industry to make recommendations to the commission 7 concerning the content of rules and regulations adopted by the 8 commission to implement the provisions of P.L.2009, c.307 9 (C.24:6I-1 et al.) and P.L. , c. (C. ) (pending before the 10 Legislature as this bill). 11 (cf: P.L.2009, c.307, s.18) 12 13 24. (New section) a. Each batch of medical cannabis cultivated 14 by a medical cannabis cultivator or a clinical registrant and each 15 batch of a medical cannabis product produced by a medical 16 cannabis manufacturer or a clinical registrant shall be tested in 17 accordance with the requirements of section 26 of 18 P.L. , c. (C. ) (pending before the Legislature as this bill) by 19 a laboratory licensed pursuant to section 25 of P.L. , c. (C. ) 20 (pending before the Legislature as this bill). The laboratory 21 performing the testing shall produce a written report detailing the 22 results of the testing, a summary of which shall be included in any 23 packaging materials for medical cannabis and medical cannabis 24 products dispensed to qualifying patients and their designated and 25 institutional caregivers. The laboratory may charge a reasonable 26 fee for any test performed pursuant to this section. 27 b. The requirements of subsection a. of this section shall take 28 effect at such time as the executive director certifies that a 29 sufficient number of laboratories have been licensed pursuant to 30 section 25 of P.L. , c. (C. ) (pending before the Legislature 31 as this bill) to ensure that all medical cannabis and medical 32 cannabis products can be promptly tested and labeled without 33 disrupting patient access to medical cannabis. 34 35 25. (New section) a. A laboratory that performs testing services 36 pursuant to section 24 of P.L. , c. (C. ) (pending before the 37 Legislature as this bill) shall be licensed by the commission and 38 may be subject to inspection by the commission to determine the 39 condition and calibration of any equipment used for testing 40 purposes and to ensure that testing is being performed in 41 accordance with the requirements of section 26 of 42 P.L. , c. (C. ) (pending before the Legislature as this bill). 43 b. There shall be no upper limit on the number of laboratories 44 that may be licensed to perform testing services. 45 c. A person who has been convicted of a crime involving any 46 controlled dangerous substance or controlled substance analog as 47 set forth in chapter 35 of Title 2C of the New Jersey Statutes except 48 paragraph (4) of subsection a. of N.J.S.2C:35-10, or any similar law

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1 of the United States or any other state shall not be issued a license 2 to operate as or be a director, officer, or employee of a medical 3 cannabis testing laboratory, unless such conviction occurred after 4 the effective date of P.L.2009, c.307 (C.24:6I-1 et al.) and was for a 5 violation of federal law relating to possession or sale of cannabis 6 for conduct that is authorized under P.L.2009, c.307 (C.24:6I- 7 1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.). 8 d. (1) The executive director shall require each applicant for 9 licensure as a medical cannabis testing laboratory to undergo a 10 criminal history record background check, except that no criminal 11 history record background check shall be required for an applicant 12 who completed a criminal history record background check as a 13 condition of professional licensure or certification. 14 For purposes of this section, the term "applicant" shall include 15 any owner, director, officer, or employee of a medical cannabis 16 testing laboratory. The executive director is authorized to exchange 17 fingerprint data with and receive criminal history record 18 background information from the Division of State Police and the 19 Federal Bureau of Investigation consistent with the provisions of 20 applicable federal and State laws, rules, and regulations. The 21 Division of State Police shall forward criminal history record 22 background information to the executive director in a timely 23 manner when requested pursuant to the provisions of this section. 24 An applicant who is required to undergo a criminal history 25 record background check pursuant to this section shall submit to 26 being fingerprinted in accordance with applicable State and federal 27 laws, rules, and regulations. No check of criminal history record 28 background information shall be performed pursuant to this section 29 unless the applicant has furnished the applicant’s written consent to 30 that check. An applicant who is required to undergo a criminal 31 history record background check pursuant to this section who 32 refuses to consent to, or cooperate in, the securing of a check of 33 criminal history record background information shall not be 34 considered for a license to operate, or authorization to be employed 35 at, a medical cannabis testing laboratory. An applicant shall bear 36 the cost for the criminal history record background check, including 37 all costs of administering and processing the check. 38 (2) The executive director shall not approve an applicant for a 39 license to operate, or authorization to be employed at, a medical 40 cannabis testing laboratory if the criminal history record 41 background information of the applicant reveals a disqualifying 42 conviction as set forth in subsection c. of this section. 43 (3) Upon receipt of the criminal history record background 44 information from the Division of State Police and the Federal 45 Bureau of Investigation, the executive director shall provide written 46 notification to the applicant of the applicant’s qualification for or 47 disqualification for a permit to operate or be a director, officer, or 48 employee of a medical cannabis testing laboratory.

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1 If the applicant is disqualified because of a disqualifying 2 conviction pursuant to the provisions of this section, the conviction 3 that constitutes the basis for the disqualification shall be identified 4 in the written notice. 5 (4) The Division of State Police shall promptly notify the 6 executive director in the event that an individual who was the 7 subject of a criminal history record background check conducted 8 pursuant to this section is convicted of a crime or offense in this 9 State after the date the background check was performed. Upon 10 receipt of that notification, the executive director shall make a 11 determination regarding the continued eligibility to operate or be a 12 director, officer, or employee of a medical cannabis testing 13 laboratory. 14 (5) Notwithstanding the provisions of subsection c. of this 15 section to the contrary, the executive director may offer provisional 16 authority for an applicant to be an owner, director, officer, or 17 employee of a medical cannabis testing laboratory for a period not 18 to exceed three months if the applicant submits to the executive 19 director a sworn statement attesting that the person has not been 20 convicted of any disqualifying conviction pursuant to this section. 21 (6) Notwithstanding the provisions of subsection c. of this 22 section to the contrary, no applicant to be an owner, director, 23 officer, or employee of a medical cannabis testing laboratory shall 24 be disqualified on the basis of any conviction disclosed by a 25 criminal history record background check conducted pursuant to 26 this section if the individual has affirmatively demonstrated to the 27 executive director clear and convincing evidence of rehabilitation. 28 In determining whether clear and convincing evidence of 29 rehabilitation has been demonstrated, the following factors shall be 30 considered: 31 (a) the nature and responsibility of the position which the 32 convicted individual would hold, has held, or currently holds; 33 (b) the nature and seriousness of the crime or offense; 34 (c) the circumstances under which the crime or offense 35 occurred; 36 (d) the date of the crime or offense; 37 (e) the age of the individual when the crime or offense was 38 committed; 39 (f) whether the crime or offense was an isolated or repeated 40 incident; 41 (g) any social conditions which may have contributed to the 42 commission of the crime or offense; and 43 (h) any evidence of rehabilitation, including good conduct in 44 prison or in the community, counseling or psychiatric treatment 45 received, acquisition of additional academic or vocational 46 schooling, successful participation in correctional work-release 47 programs, or the recommendation of those who have had the 48 individual under their supervision.

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1 26. (New section) a. The commission shall establish, by 2 regulation, standardized requirements and procedures for testing 3 medical cannabis and medical cannabis products. 4 b. Any test performed on medical cannabis or on a medical 5 cannabis product shall include liquid chromatography analysis to 6 determine chemical composition and potency, and, at a minimum, 7 screening for each of the following: 8 (1) microbial contamination; 9 (2) foreign material; 10 (3) residual pesticides; 11 (4) other agricultural residue and residual solvents; and 12 (5) heavy metals. 13 c. Laboratories shall use the dosage equivalence guidelines 14 developed by the commission pursuant to paragraph (2) of 15 subsection c. of section 18 of P.L.2009, c.307 (C.24:6I-16) when 16 testing and determining the potency of medical cannabis products. 17 d. As a condition of licensure, each laboratory shall certify its 18 intention to seek third party accreditation in accordance with ISO 19 17025 standards in order to ensure equipment is routinely inspected, 20 calibrated, and maintained until such time as the commission issues 21 its own standards or confirms the use of ISO 17025. 22 e. Until such time as the commission establishes the standards 23 required by this section, a licensed laboratory shall utilize the 24 testing standards established by another state with a medical 25 cannabis program, which state shall be designated by the executive 26 director. 27 28 27. (New section) a. The executive director shall establish a 29 medical cannabis home cultivation pilot program, under which 30 select registered qualifying patients and their designated caregivers 31 shall be authorized to cultivate medical cannabis plants in the 32 patient’s or caregiver’s own home for exclusive use by the patient 33 for medical purposes consistent with the provisions of P.L.2009, 34 c.307 (C.24:6I-1 et al.). The executive director shall determine the 35 requirements for the pilot program, provided that, at a minimum, 36 the pilot program shall: 37 (1) include at least 100 patients, to be selected by the executive 38 director based on applications submitted by registered qualifying 39 patients or their designated caregivers; 40 (2) allow the executive director to approve additional patients to 41 join the pilot program at any time, either to replace patients who 42 have ceased to participate in the pilot program, to increase the 43 overall number of participating patients, or both, provided the 44 executive director retains the ability to effectively oversee and 45 administer the pilot program; 46 (3) include at least 10 patients who are terminally ill and at least 47 10 patients who have been diagnosed with a qualifying medical

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1 condition for which the symptoms of the condition or treatment of 2 the condition include intractable chronic pain; 3 (4) allow the home cultivation of up to four mature medical 4 cannabis plants and up to 12 seedlings for each patient at one time; 5 (5) allow medical cannabis cultivators to sell, or furnish without 6 cost, cannabis seeds, plants, and plant cuttings to patients 7 participating in the pilot program, provided that any price charged 8 to pilot program patients for medical cannabis seeds, plants, or 9 cuttings shall be reasonable and may be subject to approval by the 10 executive director; 11 (6) allow patients participating in the pilot program to continue 12 to obtain medical cannabis from a medical cannabis dispensary, 13 provided that the total quantity of medical cannabis dispensed to the 14 patient is consistent with the total amount authorized for the patient 15 in a 30-day period pursuant to the provisions of section 10 of 16 P.L.2009, c.307 (C.24:6I-10); 17 (7) require each participating patient to consent to random 18 testing, at the request of the executive director, of medical cannabis 19 cultivated by the patient or the patient’s designated caregiver to 20 screen for disease, impurities, and contaminants in plants and in 21 usable cannabis obtained from home cultivation, which testing shall 22 be conducted by the commission or by a licensed testing laboratory; 23 and 24 (8) require each participating patient, or a designated caregiver 25 of the patient, to submit a monthly report to the executive director 26 detailing, for the preceding 30-day period, the number of mature 27 medical cannabis plants and seedlings cultivated, the total quantity 28 of usable medical cannabis obtained, the total quantity of medical 29 cannabis obtained from a medical cannabis dispensary, and any 30 legal, technical, or logistical issues encountered during the home 31 cultivation process. In the event that a patient ceases to participate 32 in the pilot program, the executive director shall request 33 information concerning the reasons why the patient ceased to 34 participate, and shall use this information to identify ways in which 35 the commission can address common challenges experienced by 36 patients attempting the home cultivation of medical cannabis. 37 b. The executive director shall be authorized to modify the 38 pilot program as the executive director deems appropriate, which 39 modifications may include, but shall not be limited to: revising the 40 number of patients authorized to participate; revising the number of 41 mature medical cannabis plants, seedlings, or both that may be 42 cultivated at one time for a participating patient; or terminating the 43 pilot program. 44 c. No later than 24 months after the date the executive director 45 first establishes the medical cannabis home cultivation pilot 46 program pursuant to subsection a. of this section, the executive 47 director shall submit a report to the Governor and, pursuant to 48 section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature,

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1 concerning the pilot program, including: the total number of mature 2 medical cannabis plants and seedlings cultivated; the total quantity 3 of usable medical cannabis obtained by or for patients participating 4 in the pilot program; the total quantity of medical cannabis obtained 5 from medical cannabis dispensaries by or for patients participating 6 in the pilot program; an assessment of the legal, logistical, and 7 technical issues encountered by patients and designated caregivers 8 participating in the pilot program; and any other data or analysis 9 concerning the pilot program as the executive director deems 10 necessary and appropriate. The executive director’s report shall 11 include a recommendation as to whether the pilot program should 12 be continued, expanded, modified, or terminated, as well as 13 recommendations for any administrative, executive, or legislative 14 action as the executive director deems appropriate. 15 16 28. (New section) a. An individual who performs work for or 17 on behalf of a medical cannabis cultivator, medical cannabis 18 manufacturer, or medical cannabis dispensary issued a permit 19 pursuant to section 7 of P.L.2009, c.307 (C.24:6I-7) or section 13 of 20 P.L. , c. (C. ) (pending before the Legislature as this bill) 21 shall hold a valid certification issued by the commission under this 22 section if the individual participates in: 23 (1) any activity involving obtaining, possessing, cultivating, 24 processing, manufacturing, creating, transporting, transferring, 25 relocating, or dispensing medical cannabis and medical cannabis 26 products at the premises for which the permit has been issued; or 27 (2) the delivery of medical cannabis and medical cannabis 28 products directly to patients and their designated or institutional 29 caregivers. 30 b. A person who holds a permit issued pursuant to section 7 of 31 P.L.2009, c.307 (C.24:6I-7) or section 13 of P.L. , c. 32 (C. ) (pending before the Legislature as this bill) shall verify 33 that an individual has a valid certification issued under this section 34 before allowing the individual to perform any work described in 35 subsection a. of this section at the premises for which the permit has 36 been issued. 37 c. The commission shall issue certifications to qualified 38 applicants to perform work described in this section. The 39 commission shall adopt rules and regulations establishing: the 40 qualifications for performing work described in this section; the 41 terms of a certification issued under this section; procedures for 42 applying for and renewing a certification issued under this section; 43 and reasonable application, issuance, and renewal fees for a 44 certification issued under this section. 45 d. The commission may require an individual applying for a 46 certification under this section to successfully complete a course, to 47 be made available by or through the commission, in which the 48 individual receives training on: verifying the registration status of

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1 patients, designated caregivers, and institutional caregivers; 2 handling medical cannabis and medical cannabis products; statutory 3 and regulatory provisions relating to medical cannabis; and any 4 matter deemed necessary by the commission to protect the public 5 health and safety. The commission or other provider may charge a 6 reasonable fee for the course. 7 The commission shall not require an individual to successfully 8 complete the course more than once, except that the commission 9 may adopt regulations directing continuing education training on a 10 prescribed schedule. The course may comprise part of the eight 11 hours of training required for employees of medical cannabis 12 cultivators, medical cannabis manufacturers, medical cannabis 13 dispensaries, and clinical registrants pursuant to paragraph (1) of 14 subsection j. of section 7 of P.L.2009, c.307 (C.24:6I-7). 15 As part of a final order suspending a certification issued under 16 this section, the commission may require a holder of a certification 17 to successfully complete the course as a condition of lifting the 18 suspension and as part of a final order revoking a certification 19 issued under this section, the commission shall require an individual 20 to successfully complete the course prior to applying for a new 21 certification. 22 e. The commission shall deny an application to any applicant 23 who fails to provide information, documentation and assurances as 24 required by P.L.2009, c.307 (C.24:6I-1 et al.) or as requested by the 25 commission, or who fails to reveal any fact material to 26 qualification, or who supplies information which is untrue or 27 misleading as to a material fact pertaining to the qualification 28 criteria for certification. 29 f. The commission may suspend, revoke, or refuse to renew a 30 certification if the individual who is applying for or who holds the 31 certification: violates any provision of P.L.2009, c.307 (C.24:6I-1 et 32 al.) or any rule or regulation adopted by the commission; makes a 33 false statement to the commission; or refuses to cooperate in any 34 investigation by the commission. 35 g. A certification issued under this section is a personal 36 privilege and permits work described under this section only for the 37 individual who holds the certification. 38 h. The commission shall enact rules and regulations to allow 39 for a medical cannabis dispensary or clinical registrant to engage in 40 the delivery of medical cannabis, including medical cannabis 41 products, by a certified medical cannabis handler performing work 42 for or on behalf of a medical cannabis dispensary or clinical 43 registrant, which regulations shall require, at a minimum: 44 (1) A medical cannabis dispensary or clinical registrant may 45 only deliver medical cannabis to a registered qualifying patient or to 46 the patient’s designated caregiver at the physical address of the 47 patient or caregiver that is on file with the commission, and may 48 only deliver medical cannabis directly to an institutional caregiver

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1 at the health care facility where the patient is a current patient or 2 resident. 3 (2) Deliveries shall be made only by a certified medical 4 cannabis handler who is an employee of a medical cannabis 5 dispensary or clinical registrant. 6 (3) A medical cannabis dispensary or clinical registrant shall not 7 deliver to an address located on land owned by the federal 8 government or any address on land or in a building leased by the 9 federal government. 10 (4) A medical cannabis dispensary or clinical registrant shall 11 staff each delivery vehicle with a certified medical cannabis handler 12 who is an employee of the medical cannabis dispensary or clinical 13 registrant who shall be at least 18 years of age. 14 (5) All deliveries of medical cannabis shall be made in person. 15 A delivery of medical cannabis shall not be made through the use of 16 an unmanned vehicle. 17 (6) Each certified medical cannabis handler shall carry a copy of 18 the medical cannabis handler certification card and the individual’s 19 employment identification card issued by the medical cannabis 20 dispensary or clinical registrant employing the individual. The 21 medical cannabis handler shall present the identification card upon 22 request to State and local law enforcement, and State and local 23 regulatory authorities and agencies. 24 (7) Each certified medical cannabis handler shall have access to 25 a secure form of communication with the medical cannabis 26 dispensary or clinical registrant, such as a cellular telephone, at all 27 times that a delivery vehicle contains medical cannabis. 28 (8) During delivery, the medical certified cannabis handler shall 29 maintain a physical or electronic copy of the delivery request and 30 shall make it available upon request to State and local law 31 enforcement, and State and local regulatory authorities and 32 agencies. 33 (9) Delivery vehicles shall be equipped with a secure lockbox in 34 a secured cargo area, which shall be used for the sanitary and secure 35 transport of medical cannabis. 36 (10) A certified medical cannabis handler shall not leave medical 37 cannabis in an unattended delivery vehicle unless the vehicle is 38 locked and equipped with an active vehicle alarm system. 39 (11) A delivery vehicle shall contain a Global Positioning 40 System (GPS) device for identifying the geographic location of the 41 delivery vehicle. The device shall be either permanently or 42 temporarily affixed to the delivery vehicle while the delivery 43 vehicle is in operation, and the device shall remain active and in the 44 possession of the certified medical cannabis handler at all times 45 during delivery. At all times, the medical cannabis dispensary or 46 clinical registrant shall be able to identify the geographic location 47 of all delivery vehicles that are making deliveries for the medical

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1 cannabis dispensary or clinical registrant and shall provide that 2 information to the commission upon request. 3 (12) Upon request, a medical cannabis dispensary or clinical 4 registrant shall provide the commission with information regarding 5 any vehicles used for delivery, including the vehicle’s make, model, 6 color, Vehicle Identification Number, license plate number, and 7 vehicle registration. 8 (13) Each medical cannabis dispensary and clinical registrant 9 shall maintain current hired and non-owned automobile liability 10 insurance sufficient to insure all vehicles used for delivery of 11 medical cannabis in the amount of not less than $1,000,000 per 12 occurrence or accident. 13 (14) Each medical cannabis dispensary and clinical registrant 14 shall ensure that vehicles used to deliver medical cannabis bear no 15 markings that would either identify or indicate that the vehicle is 16 used to deliver medical cannabis. 17 (15) Each medical cannabis dispensary and clinical registrant 18 shall ensure that deliveries are completed in a timely and efficient 19 manner. 20 (16) While making deliveries, a certified medical cannabis 21 handler shall only travel from the premises of the medical cannabis 22 dispensary or clinical registrant to the delivery address; from one 23 delivery address to another delivery address; or from a delivery 24 address back to the premises of the medical cannabis dispensary or 25 clinical registrant. A medical cannabis handler shall not deviate 26 from the delivery path described in this paragraph, except in the 27 event of emergency or as necessary for rest, fuel, or vehicle repair 28 stops, or because road conditions make continued use of the route 29 or operation of the vehicle unsafe, impossible, or impracticable. 30 (17) The process of delivery begins when the certified medical 31 cannabis handler leaves the premises of the medical cannabis 32 dispensary or clinical registrant with medical cannabis for delivery. 33 The process of delivering ends when the medical cannabis handler 34 returns to the premises of the medical cannabis dispensary or 35 clinical registrant after delivering medical cannabis to the registered 36 qualifying patient or the patient’s designated caregiver or 37 institutional caregiver. 38 (18) Each medical cannabis dispensary and clinical registrant 39 shall maintain a record of each delivery of medical cannabis in a 40 delivery log, which may be written or electronic. For each delivery, 41 the log shall record: 42 (a) The date and time that the delivery began and ended; 43 (b) The name of the certified medical cannabis handler; 44 (c) The medical cannabis delivered; 45 (d) The lot number of the medical cannabis; and 46 (e) The signature and registry number of the patient or caregiver 47 who accepted delivery.

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1 (19) A medical cannabis dispensary or clinical registrant shall 2 report any vehicle accidents, diversions, losses, or other reportable 3 events that occur during delivery to the appropriate State and local 4 authorities, including the commission. 5 6 29. (New section) a. The commission shall develop and 7 maintain a system for tracking the cultivation of medical cannabis, 8 the manufacturing of medical cannabis products, the transfer of 9 medical cannabis and medical cannabis products between 10 alternative treatment centers as authorized pursuant to paragraph (5) 11 of subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7), and the 12 dispensing or delivery of medical cannabis and medical cannabis 13 products to registered qualifying patients, designated caregivers, 14 and institutional caregivers. 15 b. The purposes of the system developed and maintained under 16 this section include, but are not limited to: 17 (1) preventing the diversion of medical cannabis and medical 18 cannabis products to criminal enterprises, gangs, cartels, persons 19 not authorized to possess medical cannabis, and other states; 20 (2) preventing persons from substituting or tampering with 21 medical cannabis and medical cannabis products; 22 (3) ensuring an accurate accounting of the cultivation, 23 manufacturing, dispensing, and delivery of medical cannabis and 24 medical cannabis products; 25 (4) ensuring that the testing results from licensed testing 26 laboratories are accurately reported; and 27 (5) ensuring compliance with the rules and regulations adopted 28 by the commission and any other law of this State that charges the 29 commission with a duty, function, or power related to medical 30 cannabis. 31 c. The system developed and maintained under this section 32 shall be capable of tracking, at a minimum: 33 (1) the propagation of immature medical cannabis plants and the 34 production of medical cannabis by a medical cannabis cultivator or 35 clinical registrant; 36 (2) the utilization of medical cannabis in the manufacture, 37 production, and creation of medical cannabis products by a medical 38 cannabis manufacturer or clinical registrant; 39 (3) the dispensing and delivery of medical cannabis and medical 40 cannabis products by a medical cannabis dispensary or clinical 41 registrant; 42 (4) the purchase, sale, or other transfer of medical cannabis and 43 medical cannabis products between medical cannabis cultivators, 44 medical cannabis manufacturers, medical cannabis dispensaries, and 45 clinical registrants as authorized pursuant to paragraph (5) of 46 subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7); and

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1 (5) Any other information that the commission determines is 2 reasonably necessary to accomplish the duties, functions, and 3 powers of the commission. 4 5 30. (New section) The executive director may waive any 6 requirement of P.L.2009, c.307 (C.24:6I-1 et al.) if the executive 7 director determines that granting the waiver is necessary to achieve 8 the purposes of P.L.2009, c.307 (C.24:6I-1 et al.) and provide 9 access to patients who would not otherwise qualify for the medical 10 use of cannabis to alleviate suffering from a diagnosed medical 11 condition, and does not create a danger to the public health, safety, 12 or welfare. 13 14 31. (New section) a. The Cannabis Regulatory Commission is 15 hereby created in, but not of, the Department of Health, to assume 16 all powers, duties, and responsibilities with regard to the regulation 17 and oversight of activities authorized pursuant to P.L.2009, c.307 18 (C.24:6I-1 et al.) from the Department of Health for the further 19 development, expansion, regulation, and enforcement of activities 20 associated with the medical use of cannabis pursuant P.L.2009, 21 c.307 (C.24:6I-1 et al.). All powers, duties, and responsibilities 22 with regard to the regulation and oversight of activities authorized 23 pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) shall be transferred 24 from the Department of Health to the Cannabis Regulatory 25 Commission at such time as the members of the commission are 26 appointed and the commission first organizes as provided in 27 paragraph (5) of subsection b. of this section. Thereafter, any 28 reference to the Department of Health or the Commissioner of 29 Health in any statute or regulation pertaining to the provisions of 30 P.L.2009, c.307 (C.24:6I-1 et al.) shall be deemed to refer to the 31 Cannabis Regulatory Commission and the Executive Director of the 32 Cannabis Regulatory Commission, respectively. The provisions of 33 this subsection shall be carried out in accordance with the “State 34 Agency Transfer Act,” P.L.1971, c.375 (C.52:14D-1 et seq.). 35 b. (1) The commission shall consist of five members, one of 36 whom shall be designated by the Governor as the chair, and one of 37 whom shall be designated the vice-chair in accordance with the 38 appointment process set forth in paragraph (4) of this subsection. 39 (2) The members of the commission shall be appointed by the 40 Governor as follows: 41 (a) One member shall be appointed by upon recommendation of 42 the Senate President; 43 (b) One member shall be appointed upon recommendation of the 44 Speaker of the General Assembly; 45 (c) Three members, including the chair, shall be appointed 46 without any needed recommendation. At least one of the members 47 appointed pursuant to this subparagraph shall be an individual with 48 a medical background, and at least one of the members appointed

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1 pursuant to this subparagraph shall be an individual with a 2 background in agriculture, horticulture, or both. 3 (3) Initial appointments of commission members pursuant to 4 paragraph (2) of this subsection shall not require the advice and 5 consent of the Senate. Subsequent appointments made pursuant to 6 subparagraph (c) of paragraph (2) of this subsection, including 7 reappointments of members initially appointed, shall be made with 8 the advice and consent of the Senate. Subsequent appointments 9 made pursuant to subparagraphs (a) and (b) of paragraph (2) of this 10 subsection shall be made in the same manner as the original 11 appointment. 12 (4) All five members shall be residents of this State. At least 13 one member shall be a State representative of a national 14 organization or State branch of a national organization with a stated 15 mission of studying, advocating, or adjudicating against minority 16 historical oppression, past and present discrimination, 17 unemployment, poverty and income inequality, and other forms of 18 social injustice or inequality, and all five members shall possess 19 education, training, or experience with legal, policy, or criminal 20 justice issues, corporate or industry management, finance, 21 securities, or production or distribution, medicine or pharmacology, 22 or public health, mental health, or substance use disorders. 23 (5) The chair and the other members shall serve for terms of five 24 years; provided that, for the two other members initially appointed 25 by the Governor without any needed recommendation, one shall be 26 appointed for a term of four years, and one shall be appointed for a 27 term of three years. The chair and the other members shall serve in 28 their respective capacities throughout their entire term and until 29 their successors shall have been duly appointed and qualified. Any 30 vacancy in the commission occurring for any reason other than the 31 expiration of a term, including a vacancy occurring during the term 32 of the initial chair or another initial member, shall be filled in 33 accordance with the requirements for subsequent appointments set 34 forth in paragraph (3) of this subsection for the remainder of the 35 unexpired term only. 36 (6) The chair and other members of the commission shall devote 37 full time to their respective duties of office and shall not pursue or 38 engage in any other business, occupation, or gainful employment. 39 Each member shall receive an annual salary to be fixed and 40 established by the Governor, which for the chair shall not exceed 41 $141,000, and for the other members shall not exceed $125,000. 42 (7) The members of the commission, at the commission’s first 43 meeting when called by the chair, shall elect, by a majority of the 44 total authorized membership of the commission, one of the 45 members who is appointed based upon the recommendation of the 46 Senate President or Speaker of the General Assembly as set forth in 47 paragraph (2) of this subsection to serve as vice-chair during that 48 member’s term. A new vice-chair shall be elected upon the

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1 expiration of the current vice-chair’s term, even if that member 2 remains on the commission until that member’s successor is duly 3 appointed and qualified. The vice-chair shall be empowered to 4 carry out all of the responsibilities of the chair during the chair’s 5 absence, disqualification, or inability to serve. 6 (8) A majority of the total authorized membership of the 7 commission shall be required to establish a quorum, and a majority 8 of the total authorized membership of the commission shall be 9 required to exercise its powers at any meeting thereof. However, 10 only if all five commissioners have been duly appointed in 11 accordance with the appointment process set forth in paragraph (2) 12 of this subsection, and five appointed commissioners are present at 13 a meeting, can a majority of the total authorized membership act to 14 assume the powers, duties, and responsibilities with regard to the 15 regulation and oversight of activities authorized pursuant to 16 P.L.2009, c.307 (C.24:6I-1 et al.) from the Department of Health. 17 (9) The commission shall adopt annually a schedule of regular 18 meetings, and special meetings may be held at the call of the chair. 19 (10) Any member of the commission may be removed from 20 office by the Governor, for cause, upon notice and opportunity to be 21 heard at a public hearing. Any member of the commission shall 22 automatically forfeit the member’s office upon conviction for any 23 crime. 24 c. (1) The commission may establish, and from time to time 25 alter, a plan of organization, and employ personnel as it deems 26 necessary under the direct supervision of a full-time executive 27 director for the commission. The plan of organization shall include 28 the Office of Minority, Disabled Veterans, and Women Medical 29 Cannabis Business Development established by section 32 of 30 P.L. , c. (C. ) (pending before the Legislature as this bill). 31 (a) The initial executive director shall be appointed by the 32 Governor, and thereafter every subsequent executive director shall 33 be appointed by the Governor with the advice and consent of the 34 Senate. The executive director shall serve at the pleasure of the 35 appointing Governor during the Governor’s term of office and until 36 a successor has been duly appointed and qualified. Any vacancy in 37 the office occurring for any reason other than the expiration of a 38 term, including a vacancy occurring during the term of the initial 39 executive director, shall be filled for the unexpired term only in the 40 same manner as the appointment of any subsequent executive 41 director as set forth herein. The executive director shall receive an 42 annual salary to be fixed and established by the Governor, which 43 shall be at an amount not to exceed the annual salary of a member 44 of the commission not serving as chair, as set forth in paragraph (6) 45 of subsection b. of this section. 46 (b) (i) All employees of the commission under the direct 47 supervision of the executive director, except for secretarial and 48 clerical personnel, shall be in the State’s unclassified service. All

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1 employees shall be deemed confidential employees for the purposes 2 of the “New Jersey Employer-Employee Relations Act,” P.L.1941, 3 c.100 (C.34:13A-1 et seq.). 4 (ii) If, as a result of transferring powers, duties, and 5 responsibilities with regard to the regulation and oversight of 6 activities authorized pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) 7 from the Department of Health to the commission pursuant to 8 subsection a. of this section, the commission needs to employ an 9 individual to fill a position, employees of the department who 10 performed the duties of the position to be filled shall be given a 11 one-time right of first refusal offer of employment with the 12 commission, and such employees may be removed by the 13 commission for cause or if deemed unqualified to hold the position, 14 notwithstanding any other provision of law to the contrary. A 15 department employee who becomes employed by the commission 16 shall retain as an employee of the commission the seniority, and all 17 rights related to seniority, that the employee had with the 18 department as of the last day of employment with the department; 19 provided, however, that such seniority and seniority rights shall be 20 retained only by an employee who was transferred from 21 employment with the department to employment with the 22 commission, and shall not be retained by an employee who was 23 removed from employment with the department due to layoff 24 procedures or who resigned from a position with the department 25 prior to being hired by the commission. 26 (2) The commission may sue and be sued in any court, employ 27 legal counsel to represent the commission in any proceeding to 28 which it is a party and render legal advice to the commission upon 29 its request, as well as contract for the services of other professional, 30 technical, and operational personnel and consultants as may be 31 necessary to the performance of its responsibilities. 32 (3) The commission may incur additional expenses within the 33 limits of funds available to it in order to carry out its duties, 34 functions, and powers under P.L.2009, c.307 (C.24:6I-1 et al.). 35 d. With respect to the activities of the commission, neither the 36 President of the Senate or Speaker of the General Assembly shall 37 be permitted to appear or practice or act in any capacity whatsoever 38 before the commission regarding any matter whatsoever, nor shall 39 any member of the immediate family of the Governor, President of 40 the Senate, or Speaker of the General Assembly be permitted to so 41 practice or appear in any capacity whatsoever before the 42 commission regarding any matter whatsoever. As used in this 43 subsection, “immediate family” means the spouse, domestic partner, 44 or civil union partner, and any dependent child or stepchild, 45 recognized by blood or by law, of the Governor, President of the 46 Senate, or Speaker of the General Assembly, or of the spouse, 47 domestic partner, or civil union partner residing in the same

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1 household as the Governor, President of the Senate, or Speaker of 2 the General Assembly. 3 e. The commission shall, no later than three years after the date 4 it first organizes, contract with a public research university, as 5 defined in section 3 of P.L.1994, c.48 (C.18A:3B-3), to conduct an 6 independent study to review: 7 (1) the commission’s organization; 8 (2) the commission’s regulation and enforcement activities; 9 (3) the overall effectiveness of the commission as a full time 10 entity; and 11 (4) whether the regulation and oversight of medical cannabis 12 could be more effectively and efficiently managed through a 13 reorganization of the commission, consolidation of the commission 14 within the Department of Health or another Executive Branch 15 department, conversion to a part-time commission, or the transfer of 16 some or all of the commission’s operations elsewhere within the 17 Executive Branch. 18 The commission shall submit the findings of the independent 19 study, along with the commission’s recommendations for 20 appropriate executive, administrative, or legislative action, to the 21 Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14- 22 19.1), to the Legislature. 23 24 32. (New section) a. There is hereby established in the 25 commission an Office of Minority, Disabled Veterans, and Women 26 Medical Cannabis Business Development. The office shall be 27 under the immediate supervision of a director. The director of the 28 office shall be appointed by the Governor, and shall serve at the 29 pleasure of the appointing Governor during the Governor’s term of 30 office and until a successor has been duly appointed and qualified. 31 Any vacancy in the directorship occurring for any reason other than 32 the expiration of the director’s term of office shall be filled for the 33 unexpired term only in the same manner as the original 34 appointment. The director shall receive an annual salary as 35 provided by law which shall be at an amount not to exceed the 36 annual salary of the executive director of the commission. 37 b. (1) The office shall establish and administer, under the 38 direction of the commission, unified practices and procedures for 39 promoting participation in the medical cannabis industry by persons 40 from socially and economically disadvantaged communities, 41 including by prospective and existing ownership of minority 42 businesses and women’s businesses, as these terms are defined in 43 section 2 of P.L.1986, c.195 (C.52:27H-21.18), and disabled 44 veterans’ businesses as defined in section 2 of P.L.2015, c.116 45 (C.52:32-31.2), to be issued medical cannabis cultivator, medical 46 cannabis manufacturer, medical cannabis dispensary, and clinical 47 registrant permits. These unified practices and procedures shall 48 include the certification and subsequent recertification at regular

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1 intervals of a business as a minority or women’s business, or a 2 disabled veterans’ business, in accordance with eligibility criteria 3 and a certification application process established by the 4 commission through regulation in consultation with the office. 5 (2) The office shall conduct advertising and promotional 6 campaigns, and shall disseminate information to the public, to 7 increase awareness for participation in the medical cannabis 8 industry by persons from socially and economically disadvantaged 9 communities. To this end, the office shall sponsor seminars and 10 informational programs, and shall provide information on its 11 Internet website, providing practical information concerning the 12 medical cannabis industry, including information on business 13 management, marketing, and other related matters. 14 c. (1) The office shall develop, recommend, and implement 15 policies, practices, protocols, standards, and criteria designed to 16 promote the formulation of medical cannabis business entities and 17 participation in the medical cannabis industry by persons from 18 socially and economically disadvantaged communities, including by 19 promoting applications for, and the issuance of, medical cannabis 20 cultivator, medical cannabis manufacturer, medical cannabis 21 dispensary, and clinical registrant permits to certified minority, 22 women’s, and disabled veterans’ businesses. The office shall 23 evaluate the effectiveness of these measures by considering whether 24 the measures have resulted in new medical cannabis cultivator, 25 medical cannabis manufacturer, and medical cannabis dispensary 26 permits being issued in accordance with the provisions of 27 subsection f. of section 12 of P.L. , c. (C. ) (pending 28 before the Legislature as this bill). 29 (2) The office shall periodically analyze the total number of 30 permits issued by the commission as compared with the number of 31 certified minority, women’s, and disabled veterans’ businesses that 32 submitted applications for, and that were awarded, such permits. 33 The office shall make good faith efforts to establish, maintain, and 34 enhance the measures designed to promote the formulation and 35 participation in the operation of medical cannabis establishments by 36 persons from socially and economically disadvantaged communities 37 consistent with the standards set forth in paragraph (1) of this 38 subsection, and to coordinate and assist the commission with 39 respect to its incorporation of these permitting measures into the 40 application and review process for issuing permits under P.L.2009, 41 c.307 (C.24:6I-1 et al.). 42 d. The office may review the commission’s measures regarding 43 participation in the medical cannabis industry by persons from 44 socially and economically disadvantaged communities, and 45 minority, women’s, and disabled veterans’ businesses, and make 46 recommendations on relevant policy and implementation matters for 47 the improvement thereof. The office may consult with experts or

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1 other knowledgeable individuals in the public or private sector on 2 any aspect of its mission. 3 e. The office shall prepare information regarding its activities 4 pursuant to this section concerning participation in the medical 5 cannabis industry by persons from socially and economically 6 disadvantaged communities, including medical cannabis business 7 development initiatives for minority, women’s, and disabled 8 veterans’ businesses participating in the medical cannabis 9 marketplace, to be incorporated by the commission into its annual 10 report submitted to the Governor and to the Legislature pursuant to 11 section 14 of P.L.2009, c.307 (C.24:6I-12). 12 13 33. (New section) a. No person shall be appointed to or 14 employed by the commission if, during the period commencing 15 three years prior to appointment or employment, the person held 16 any direct or indirect interest in, or any employment by, any holder 17 of, or applicant for, a medical cannabis cultivator, medical cannabis 18 manufacturer, medical cannabis dispensary, or clinical registrant 19 permit pursuant to P.L.2009, c.307 (C.24:6I-1 et al.); provided, 20 however, that notwithstanding any other provision of law to the 21 contrary, any such person may be appointed to or employed by the 22 commission if the person’s prior interest in any such permit holder 23 or applicant would not, in the opinion of the commission, interfere 24 with the objective discharge of the person's obligations of 25 appointment or employment, but in no instance shall any person be 26 appointed to or employed by the commission if the person’s prior 27 interest in such permit holder or applicant constituted a controlling 28 interest in that permit holder; and provided further, however, that 29 notwithstanding any other provision of law to the contrary, any such 30 person may be employed by the commission in a secretarial or 31 clerical position if, in the opinion of the commission, the person’s 32 previous employment by, or interest in, any permit holder would 33 not interfere with the objective discharge of the person's 34 employment obligations. 35 b. Prior to appointment or employment, each member of the 36 commission and each employee of the commission shall swear or 37 affirm that the member or employee, as applicable, possesses no 38 interest in any business or organization issued a medical cannabis 39 cultivator, medical cannabis manufacturer, medical cannabis 40 dispensary, or clinical registrant permit by the commission. 41 c. (1) Each member of the commission shall file with the State 42 Ethics Commission a financial disclosure statement listing all assets 43 and liabilities, property and business interests, and sources of 44 income of the member and the member's spouse, domestic partner, 45 or partner in a civil union couple, as the case may be, and shall also 46 provide to the State Ethics Commission in the same financial 47 disclosure statement a listing all assets and liabilities, property and 48 business interests, and sources of income of each dependent child or

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1 stepchild, recognized by blood or by law, of the member, or of the 2 spouse, domestic partner, or partner in a civil union couple residing 3 in the same household as the member. Each statement shall be 4 under oath and shall be filed at the time of appointment and 5 annually thereafter. 6 (2) Each employee of the commission, except for secretarial and 7 clerical personnel, shall file with the State Ethics Commission a 8 financial disclosure statement listing all assets and liabilities, 9 property and business interests, and sources of income of the 10 employee and the employee's spouse, domestic partner, or partner in 11 a civil union couple, as the case may be. Such statement shall be 12 under oath and shall be filed at the time of employment and 13 annually thereafter. Notwithstanding the provisions of subsection 14 (n) of section 10 of P.L.1971, c.182 (C.52:13D-21), only financial 15 disclosure statements filed by a commission employee who is in a 16 policy-making management position shall be posted on the Internet 17 site of the State Ethics Commission. 18 19 34. (New section) a. The “New Jersey Conflicts of Interest 20 Law,” P.L.1971, c.182 (C.52:13D-12 et seq.) shall apply to 21 members of the commission and to all employees of the 22 commission, except as herein specifically provided. 23 b. (1) The commission shall promulgate and maintain a Code 24 of Ethics that is modeled upon the Code of Judicial Conduct of the 25 American Bar Association, as amended and adopted by the Supreme 26 Court of New Jersey. 27 (2) The Codes of Ethics promulgated and maintained by the 28 commission shall not be in conflict with the laws of this State, 29 except, however, that the Code of Ethics may be more restrictive 30 than any law of this State. 31 c. The Codes of Ethics promulgated and maintained by the 32 commission, and any amendments or restatements thereof, shall be 33 submitted to the State Ethics Commission for approval. The Codes 34 of Ethics shall include, but not be limited to, provisions that: 35 (1) No commission member or employee shall be permitted to 36 enter and engage in any activities, nor have any interest, directly or 37 indirectly, in any medical cannabis cultivator, medical cannabis 38 manufacturer, medical cannabis dispensary, or clinical registrant 39 issued a permit by the commission in accordance with the P.L.2009, 40 c.307 (C.24:6I-1 et al.), except in the course of the member’s or 41 employee’s duties. 42 (2) No commission member or employee shall solicit or accept 43 employment from any medical cannabis cultivator, medical 44 cannabis manufacturer, medical cannabis dispensary, or clinical 45 registrant permit holder, or from any applicant for a medical 46 cannabis cultivator, medical cannabis manufacturer, medical 47 cannabis dispensary, or clinical registrant permit, for a period of 48 two years after termination of service with the commission, except

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1 as otherwise provided in section 35 of P.L. , c. (C. ) 2 (pending before the Legislature as this bill). 3 (3) No commission member or employee shall act in the 4 member’s or employee’s official capacity in any matter wherein the 5 member, employee, or the member’s or employee’s spouse, 6 domestic partner, or partner in a civil union couple, or child, parent, 7 or sibling has a direct or indirect personal financial interest that 8 might reasonably be expected to impair the member’s or 9 employee’s objectivity or independence of judgment. 10 (4) No commission member or employee shall act in the 11 member’s or employee’s official capacity in a matter concerning 12 any medical cannabis cultivator, medical cannabis manufacturer, 13 medical cannabis dispensary, or clinical registrant permit holder, or 14 any applicant for a medical cannabis cultivator, medical cannabis 15 manufacturer, medical cannabis dispensary, or clinical registrant 16 permit who is the employer of a spouse, domestic partner, or partner 17 in a civil union couple, or child, parent, or sibling of the 18 commission member or employee when the fact of the employment 19 of the spouse, domestic partner, or partner in a civil union couple, 20 or child, parent, or sibling might reasonably be expected to impair 21 the objectivity and independence of judgment of the commission 22 member or employee. 23 (5) No spouse, domestic partner, or partner in a civil union 24 couple, or child, parent, or sibling of a commission member shall be 25 employed in any capacity by any medical cannabis cultivator, 26 medical cannabis manufacturer, medical cannabis dispensary, or 27 clinical registrant permit holder, or any applicant for a medical 28 cannabis cultivator, medical cannabis manufacturer, medical 29 cannabis dispensary, or clinical registrant permit, nor by any 30 holding, intermediary, or subsidiary company thereof. 31 (6) No commission member shall meet with any person, except 32 for any other member of the commission or employee of the 33 commission, or discuss any issues involving any pending or 34 proposed application or any matter whatsoever which may 35 reasonably be expected to come before the commission, or any 36 member thereof, for determination unless the meeting or discussion 37 takes place on the business premises of the commission, provided, 38 however, that commission members may meet to consider matters 39 requiring the physical inspection of equipment or premises at the 40 location of the equipment or premises. All meetings or discussions 41 subject to this paragraph shall be noted in a log maintained for this 42 purpose and available for inspection pursuant to the provisions of 43 P.L.1963, c.73 (C.47:1A-1 et seq.). 44 d. No commission member or employee shall have any interest, 45 direct or indirect, in any medical cannabis cultivator, medical 46 cannabis manufacturer, medical cannabis dispensary, or clinical 47 registrant permit holder, or any applicant for a medical cannabis 48 cultivator, medical cannabis manufacturer, medical cannabis

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1 dispensary, or clinical registrant permit, during the member’s term 2 of office or employee’s term of employment. 3 e. Each commission member and employee shall devote the 4 member’s or employee’s entire time and attention to the member’s 5 or employee’s duties, as applicable, and shall not pursue any other 6 business or occupation or other gainful employment; provided, 7 however, that secretarial and clerical personnel may engage in such 8 other gainful employment as shall not interfere with their duties to 9 the commission, unless otherwise directed; and provided further, 10 however, that other employees of the commission may engage in 11 such other gainful employment as shall not interfere or be in 12 conflict with their duties to the commission or division, upon 13 approval by the commission, as the case may be. 14 f. (1) A member of the commission and the executive director 15 or any other employee of the commission holding a supervisory or 16 policy-making management position shall not make any 17 contribution as that term is defined in “The New Jersey Campaign 18 Contributions and Expenditures Reporting Act,” P.L.1973, c.83 19 (C.19:44A-1 et seq.). 20 (2) A member or employee of the commission shall not: 21 (a) use the member’s or employee’s official authority or 22 influence for the purpose of interfering with or affecting the result 23 of an election or a nomination for office; 24 (b) directly or indirectly coerce, attempt to coerce, command, or 25 advise any person to pay, lend, or contribute anything of value to a 26 party, committee, organization, agency, or person for political 27 purposes; or 28 (c) take any active part in political campaigns or the 29 management thereof; provided, however, that nothing herein shall 30 prohibit a member or employee from voting as the member or 31 employee chooses or from expressing personal opinions on political 32 subjects and candidates. 33 g. For the purpose of applying the provisions of the “New 34 Jersey Conflicts of Interest Law,” any consultant or other person 35 under contract for services to the commission shall be deemed to be 36 a special State employee, except that the restrictions of section 4 of 37 P.L.1981, c.142 (C.52:13D-17.2) shall not apply to such person. 38 Such person and any corporation, firm, or partnership in which the 39 person has an interest or by which the person is employed shall not 40 represent any person or party other than the commission. 41 42 35. (New section) a. No member of the commission shall hold 43 any direct or indirect interest in, or be employed by, any holder of, 44 or applicant for, a medical cannabis cultivator, medical cannabis 45 manufacturer, medical cannabis dispensary, or clinical registrant 46 permit issued pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) for a 47 period of two years commencing on the date that membership on 48 the commission terminates.

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1 b. (1) No employee of the commission may acquire any direct 2 or indirect interest in, or accept employment with, any medical 3 cannabis cultivator, medical cannabis manufacturer, medical 4 cannabis dispensary, or clinical registrant permit holder, or any 5 applicant for a medical cannabis cultivator, medical cannabis 6 manufacturer, medical cannabis dispensary, or clinical registrant 7 permit, for a period of two years commencing at the termination of 8 employment with the commission, except that a secretarial or 9 clerical employee of the commission may accept such employment 10 at any time after the termination of employment with the 11 commission. At the end of two years and for a period of two years 12 thereafter, a former employee who held a policy-making 13 management position at any time during the five years prior to 14 termination of employment may acquire an interest in, or accept 15 employment with, any medical cannabis cultivator, medical 16 cannabis manufacturer, medical cannabis dispensary, or clinical 17 registrant permit holder, or any applicant for a medical cannabis 18 cultivator, medical cannabis manufacturer, medical cannabis 19 dispensary, or clinical registrant permit, upon application to, and 20 the approval of, the commission, upon a finding that the interest to 21 be acquired or the employment will not create the appearance of a 22 conflict of interest and does not evidence a conflict of interest in 23 fact. 24 (2) Notwithstanding the provisions of this subsection, if the 25 employment of a commission employee, other than an employee 26 who held a policy-making management position at any time during 27 the five years prior to termination of employment, is terminated as a 28 result of a reduction in the workforce at the commission, the 29 employee may, at any time prior to the end of the two-year period, 30 accept employment with any medical cannabis cultivator, medical 31 cannabis manufacturer, medical cannabis dispensary, or clinical 32 registrant permit holder, or any applicant for a medical cannabis 33 cultivator, medical cannabis manufacturer, medical cannabis 34 dispensary, or clinical registrant permit, upon application to, and 35 the approval of, the commission, upon a finding that the 36 employment will not create the appearance of a conflict of interest 37 and does not evidence a conflict of interest in fact. The commission 38 shall take action on an application within 30 days of receipt and an 39 application may be submitted to the commission prior to or after the 40 commencement of the employment. 41 c. No commission member or employee shall represent any 42 person or party other than the State before or against the 43 commission for a period of two years from the termination of office 44 or employment with the commission. 45 d. No partnership, firm, or corporation in which a former 46 commission member or employee has an interest, nor any partner, 47 officer, or employee of any such partnership, firm, or corporation

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1 shall make any appearance or representation which is prohibited to 2 the former member or employee. 3 4 36. (New section) a. (1) No holder of, or applicant for, a 5 medical cannabis cultivator, medical cannabis manufacturer, 6 medical cannabis dispensary, or clinical registrant permit issued 7 pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) shall employ or offer 8 to employ, or provide, transfer, or sell, or offer to provide, transfer, 9 or sell any interest, direct or indirect, in any medical cannabis 10 cultivator, medical cannabis manufacturer, medical cannabis 11 dispensary, or clinical registrant holder to any person restricted 12 from such transactions by the provisions of sections 33 through 35 13 of P.L. , c. (C. ) (pending before the Legislature as this 14 bill). 15 (2) In addition to any civil penalty imposed pursuant to 16 subsection c. of this section, the commission may deny an 17 application, or revoke or suspend a permit holder’s permit, for 18 committing a violation of this subsection. 19 b. (1) A member or employee of the commission who makes 20 or causes to be made a political contribution prohibited under 21 subsection f. of section 34 of P.L. , c. (C. ) (pending before 22 the Legislature as this bill) is guilty of a crime of the fourth degree, 23 but notwithstanding the provisions of subsection b. of N.J.S.2C:43- 24 3, a fine not to exceed $200,000 may be imposed. 25 (2) A member or employee of the commission who willfully 26 violates any other provisions in sections 33 through 35 of P.L. , 27 c. (C. ) (pending before the Legislature as this bill) is guilty of 28 a disorderly persons offense. 29 c. The State Ethics Commission, established pursuant to the 30 "New Jersey Conflicts of Interest Law," P.L.1971, c.182 31 (C.52:13D-12 et seq.), shall enforce the provisions of sections 33 32 through 36 of P.L. , c. (C. ) (pending before the Legislature 33 as this bill), and upon a finding of a violation, impose a civil 34 penalty of not less than $500 nor more than $10,000, which penalty 35 may be collected in a summary proceeding pursuant to the "Penalty 36 Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). 37 If a violation also represents a crime or disorderly persons offense 38 as set forth in subsection b. of this section, the State Ethics 39 Commission shall also refer the matter to the Attorney General or 40 appropriate county prosecutor for further investigation and 41 prosecution. 42 43 37. Section 2 of P.L.1971, c.182 (C.52:13D-13) is amended to 44 read as follows: 45 2. As used in this act, and unless a different meaning clearly 46 appears from the context, the following terms shall have the 47 following meanings:

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1 a. "State agency" means any of the principal departments in the 2 Executive Branch of the State Government, and any division, board, 3 bureau, office, commission, or other instrumentality within or 4 created by such department, the Legislature of the State, and any 5 office, board, bureau, or commission within or created by the 6 Legislative Branch, and, to the extent consistent with law, any 7 interstate agency to which New Jersey is a party and any 8 independent State authority, commission, instrumentality, or 9 agency. A county or municipality shall not be deemed an agency or 10 instrumentality of the State. 11 b. "State officer or employee" means any person, other than a 12 special State officer or employee: (1) holding an office or 13 employment in a State agency, excluding an interstate agency, other 14 than a member of the Legislature; or (2) appointed as a New Jersey 15 member to an interstate agency. 16 c. "Member of the Legislature" means any person elected to 17 serve in the General Assembly or the Senate. 18 d. "Head of a State agency" means: (1) in the case of the 19 Executive Branch of government, except with respect to interstate 20 agencies, the department head or, if the agency is not assigned to a 21 department, the Governor[,] ; and (2) in the case of the Legislative 22 Branch, the chief presiding officer of each House of the Legislature. 23 e. "Special State officer or employee" means: (1) any person 24 holding an office or employment in a State agency, excluding an 25 interstate agency, for which office or employment no compensation 26 is authorized or provided by law, or no compensation other than a 27 sum in reimbursement of expenses, whether payable per diem or per 28 annum, is authorized or provided by law; (2) any person, not a 29 member of the Legislature, holding a part-time elective or 30 appointive office or employment in a State agency, excluding an 31 interstate agency[,] ; or (3) any person appointed as a New Jersey 32 member to an interstate agency the duties of which membership are 33 not full-time. 34 f. "Person" means any natural person, association or 35 corporation. 36 g. "Interest" means: (1) the ownership or control of more than 37 [10%] 10 percent of the profits or assets of a firm, association, or 38 partnership, or more than [10%] 10 percent of the stock in a 39 corporation for profit other than a professional service corporation 40 organized under the "Professional Service Corporation Act," 41 P.L.1969, c.232 (C. 14A:17-1 et seq.); or (2) the ownership or 42 control of more than [1%] one percent of the profits of a firm, 43 association, or partnership, or more than [1%] one percent of the 44 stock in any corporation, (a) which is the holder of, or an applicant 45 for, a casino license or in any holding or intermediary company 46 with respect thereto, as defined by the "Casino Control Act," 47 P.L.1977, c.110 (C.5:12-1 et seq.), or (b) which is the holder of, or

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1 an applicant for, a medical cannabis cultivator, medical cannabis 2 manufacturer, medical cannabis dispensary, or clinical registrant 3 permit issued pursuant P.L.2009, c.307 (C.24:6I-1 et al.), or any 4 holding or intermediary company with respect thereto. The 5 provisions of this act governing the conduct of individuals are 6 applicable to shareholders, associates or professional employees of 7 a professional service corporation regardless of the extent or 8 amount of their shareholder interest in such a corporation. 9 h. "Cause, proceeding, application or other matter" means a 10 specific cause, proceeding or matter and does not mean or include 11 determinations of general applicability or the preparation or review 12 of legislation which is no longer pending before the Legislature or 13 the Governor. 14 i. "Member of the immediate family" of any person means the 15 person's spouse, domestic partner, civil union partner, child, parent, 16 or sibling residing in the same household. 17 (cf: P.L.1987, c.432, s.2) 18 19 38. Section 4 of P.L.1981, c.142 (C.52:13D-17.2) is amended to 20 read as follows: 21 4. a. As used in this section "person" means: 22 (1) [any State officer or employee subject to financial disclosure 23 by law or executive order and any other State officer or employee 24 with responsibility for matters affecting casino activity; any special 25 State officer or employee with responsibility for matters affecting 26 casino activity;] (a) with respect to casino activity and activity 27 related to medical cannabis authorized pursuant to P.L.2009, c.307 28 (C.24:6I-1 et al.), the Governor; [any member of the Legislature 29 or] the President of the Senate; the Speaker of the General 30 Assembly; any full-time member of the Judiciary; any full-time 31 professional employee of the Office of the Governor [, or the 32 Legislature; members of the Casino Reinvestment Development 33 Authority]; the head of a principal department; the assistant or 34 deputy heads of a principal department, including all assistant and 35 deputy commissioners; the head of any division of a principal 36 department; 37 (b) with respect to casino activity, any State officer or employee 38 subject to financial disclosure by law or executive order and any 39 other State officer or employee with responsibility for matters 40 affecting casino activity; any special State officer or employee with 41 responsibility for matters affecting casino activity; any member of 42 the Legislature; any full-time professional employee of the 43 Legislature; members of the Casino Reinvestment Development 44 Authority; or 45 (c) with respect to activity related to medical cannabis authorized 46 pursuant to P.L.2009, c.307 (C.24:6I-1 et al.), any State officer or 47 employee subject to financial disclosure by law or executive order

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1 and any other State officer or employee with responsibility for 2 matters affecting medical cannabis activity; any special State officer 3 or employee with responsibility for matters affecting medical 4 cannabis activity; members of the Cannabis Regulatory 5 Commission; or 6 (2) (a) any member of the governing body, or the municipal 7 judge or the municipal attorney of a municipality wherein a casino 8 is located; any member of or attorney for the planning board or 9 zoning board of adjustment of a municipality wherein a casino is 10 located, or any professional planner, or consultant regularly 11 employed or retained by such planning board or zoning board of 12 adjustment; or 13 (b) any member of the governing body or the municipal judge of 14 a municipality, any member of the planning board or zoning board 15 of adjustment, or any professional planner, or consultant regularly 16 employed or retained by such planning board or zoning board of 17 adjustment, of a municipality wherein a medical cannabis 18 cultivator, medical cannabis manufacturer, medical cannabis 19 dispensary, or clinical registrant issued a permit pursuant to 20 P.L.2009, c.307 (C.24:6I-1 et al.) is located. 21 b. (1) No State officer or employee, nor any person, nor any 22 member of the immediate family of any State officer or employee, 23 or person, nor any partnership, firm, or corporation with which any 24 such State officer or employee or person is associated or in which 25 he has an interest, nor any partner, officer, director, or employee 26 while he is associated with such partnership, firm, or corporation, 27 shall hold, directly or indirectly, an interest in, or hold employment 28 with, or represent, appear for, or negotiate on behalf of, any holder 29 of, or applicant for, a casino license, or any holding or intermediary 30 company with respect thereto, in connection with any cause, 31 application, or matter, except as provided in section 3 of P.L.2009, 32 c.26 (C.52:13D-17.3), and except that [(1)] (a) a State officer or 33 employee other than a State officer or employee included in the 34 definition of person, and [(2)] (b) a member of the immediate 35 family of a State officer or employee, or of a person, may hold 36 employment with the holder of, or applicant for, a casino license if, 37 in the judgment of the State Ethics Commission, the Joint 38 Legislative Committee on Ethical Standards, or the Supreme Court, 39 as appropriate, such employment will not interfere with the 40 responsibilities of the State officer or employee, or person, and will 41 not create a conflict of interest, or reasonable risk of the public 42 perception of a conflict of interest, on the part of the State officer or 43 employee, or person. No special State officer or employee without 44 responsibility for matters affecting casino activity, excluding those 45 serving in the Departments of Education, Health [and Senior 46 Services], and Human Services and the [Commission on] Office of 47 the Secretary of Higher Education, shall hold, directly or indirectly, 48 an interest in, or represent, appear for, or negotiate on behalf of, any

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1 holder of, or applicant for, a casino license, or any holding or 2 intermediary company with respect thereto, in connection with any 3 cause, application, or matter. However, a special State officer or 4 employee without responsibility for matters affecting casino 5 activity may hold employment directly with any holder of or 6 applicant for a casino license or any holding or intermediary 7 company thereof and if so employed may hold, directly or 8 indirectly, an interest in, or represent, appear for, or negotiate on 9 behalf of, [his] that employer, except as otherwise prohibited by 10 law. 11 (2) No State officer or employee, nor any person, nor any 12 member of the immediate family of any State officer or employee, 13 or person, nor any partnership, firm, or corporation with which any 14 such State officer or employee or person is associated or in which 15 he has an interest, nor any partner, officer, director, or employee 16 while he is associated with such partnership, firm, or corporation, 17 shall hold, directly or indirectly, an interest in, or hold employment 18 with, or represent, appear for, or negotiate on behalf of, or derive 19 any remuneration, payment, benefit, or any other thing of value for 20 any services, including but not limited to consulting or similar 21 services, from any holder of, or applicant for, a license, permit, or 22 other approval to conduct Internet gaming, or any holding or 23 intermediary company with respect thereto, or any Internet gaming 24 affiliate of any holder of, or applicant for, a casino license, or any 25 holding or intermediary company with respect thereto, or any 26 business, association, enterprise, or other entity that is organized, in 27 whole or in part, for the purpose of promoting, advocating for, or 28 advancing the interests of the Internet gaming industry generally or 29 any Internet gaming-related business or businesses in connection 30 with any cause, application, or matter, except as provided in section 31 3 of P.L.2009, c.26 (C.52:13D-17.3), and except that [(1)] (a) a 32 State officer or employee other than a State officer or employee 33 included in the definition of person, and [(2)] (b) a member of the 34 immediate family of a State officer or employee, or of a person, 35 may hold employment with the holder of, or applicant for, a license, 36 permit, or other approval to conduct Internet gaming, or any 37 holding or intermediary company with respect thereto, or any 38 Internet gaming affiliate of any holder of, or applicant for, a casino 39 license, or any holding or intermediary company with respect 40 thereto if, in the judgment of the State Ethics Commission, the Joint 41 Legislative Committee on Ethical Standards, or the Supreme Court, 42 as appropriate, such employment will not interfere with the 43 responsibilities of the State officer or employee, or person, and will 44 not create a conflict of interest, or reasonable risk of the public 45 perception of a conflict of interest, on the part of the State officer or 46 employee, or person. 47 (3) No State officer or employee, nor any person, nor any 48 member of the immediate family of any State officer or employee,

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1 or person, nor any partnership, firm, or corporation with which any 2 such State officer or employee or person is associated or in which 3 he has an interest, nor any partner, officer, director, or employee 4 while he is associated with such partnership, firm, or corporation, 5 shall hold, directly or indirectly, an interest in, or hold employment 6 with, or represent, appear for, or negotiate on behalf of, any holder 7 of, or applicant for, a medical cannabis cultivator, medical cannabis 8 manufacturer, medical cannabis dispensary, or clinical registrant 9 permit issued pursuant to P.L.2009, c.307 (C.24:6I-1 et al.), or any 10 holding or intermediary company with respect thereto, in 11 connection with any cause, application, or matter, except as 12 provided in section 3 of P.L.2009, c.26 (C.52:13D-17.3), and except 13 that (a) a State officer or employee other than a State officer or 14 employee included in the definition of person, and (b) a member of 15 the immediate family of a State officer or employee, or of a person, 16 may hold employment with the holder of, or applicant for, a 17 medical cannabis cultivator, medical cannabis manufacturer, 18 medical cannabis dispensary, or clinical registrant permit if, in the 19 judgment of the State Ethics Commission, the Joint Legislative 20 Committee on Ethical Standards, or the Supreme Court, as 21 appropriate, such employment will not interfere with the 22 responsibilities of the State officer or employee, or person, and will 23 not create a conflict of interest, or reasonable risk of the public 24 perception of a conflict of interest, on the part of the State officer or 25 employee, or person. No special State officer or employee without 26 responsibility for matters affecting medical cannabis activity, 27 excluding those serving in the Departments of Education, Health, 28 and Human Services and the Office of the Secretary of Higher 29 Education, shall hold, directly or indirectly, an interest in, or 30 represent, appear for, or negotiate on behalf of, any holder of, or 31 applicant for, a medical cannabis cultivator, medical cannabis 32 manufacturer, medical cannabis dispensary, or clinical registrant 33 permit, or any holding or intermediary company with respect 34 thereto, in connection with any cause, application, or matter. 35 However, a special State officer or employee without responsibility 36 for matters affecting medical cannabis activity may hold 37 employment directly with any holder of or applicant for a medical 38 cannabis cultivator, medical cannabis manufacturer, medical 39 cannabis dispensary, or clinical registrant permit, or any holding or 40 intermediary company thereof, and if so employed may hold, 41 directly or indirectly, an interest in, or represent, appear for, or 42 negotiate on behalf of, that employer, except as otherwise 43 prohibited by law. 44 c. (1) No person or any member of his immediate family, nor 45 any partnership, firm, or corporation with which such person is 46 associated or in which he has an interest, nor any partner, officer, 47 director, or employee while he is associated with such partnership, 48 firm or corporation, shall, within two years next subsequent to the

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1 termination of the office or employment of such person, hold, 2 directly or indirectly, an interest in, or hold employment with, or 3 represent, appear for, or negotiate on behalf of, any holder of, or 4 applicant for, a casino license in connection with any cause, 5 application or matter, or any holding or intermediary company with 6 respect to such holder of, or applicant for, a casino license in 7 connection with any phase of casino development, permitting, 8 licensure, or any other matter whatsoever related to casino activity, 9 except as provided in section 3 of P.L.2009, c.26 (C.52:13D-17.3), 10 and except that: 11 [(1)] (a) a member of the immediate family of a person may 12 hold employment with the holder of, or applicant for, a casino 13 license if, in the judgment of the State Ethics Commission, the Joint 14 Legislative Committee on Ethical Standards, or the Supreme Court, 15 as appropriate, such employment will not interfere with the 16 responsibilities of the person and will not create a conflict of 17 interest, or reasonable risk of the public perception of a conflict of 18 interest, on the part of the person; 19 [(2)] (b) an employee who is terminated as a result of a 20 reduction in the workforce at the agency where employed, other 21 than an employee who held a policy-making management position 22 at any time during the five years prior to termination of 23 employment, may, at any time prior to the end of the two-year 24 period, accept employment with the holder of, or applicant for, a 25 casino license if, in the judgment of the State Ethics Commission, 26 the Joint Legislative Committee on Ethical Standards, or the 27 Supreme Court, as appropriate, such employment will not create a 28 conflict of interest, or reasonable risk of the public perception of a 29 conflict of interest, on the part of the employee. In no case shall the 30 restrictions of this subsection apply to a secretarial or clerical 31 employee. 32 Nothing herein contained shall alter or amend the post- 33 employment restrictions applicable to members and employees of 34 the Casino Control Commission and employees and agents of the 35 Division of Gaming Enforcement pursuant to paragraph (2) of 36 subsection e. [(2)] of section 59 and to section 60 of P.L.1977, 37 c.110 (C.5:12-59 and C.5:12-60); and 38 [(3)] (c) any partnership, firm, or corporation engaged in the 39 practice of law or in providing any other professional services with 40 which any person included in subparagraphs (a) and (b) of 41 paragraph (1) of subsection a. of this section, or a member of the 42 immediate family of that person, is associated, and any partner, 43 officer, director, or employee thereof, other than that person, or 44 immediate family member, may represent, appear for or negotiate 45 on behalf of any holder of, or applicant for, a casino license in 46 connection with any cause, application or matter or any holding 47 company or intermediary company with respect to such holder of, 48 or applicant for, a casino license in connection with any phase of

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1 casino development, permitting, licensure or any other matter 2 whatsoever related to casino activity, and that person or immediate 3 family member shall not be barred from association with such 4 partnership, firm or corporation, if for a period of two years next 5 subsequent to the termination of the person's office or employment, 6 the person or immediate family member [(a)] (i) is screened from 7 personal participation in any such representation, appearance or 8 negotiation; and [(b)] (ii) is associated with the partnership, firm or 9 corporation in a position which does not entail any equity interest in 10 the partnership, firm or corporation. The exception provided in this 11 paragraph shall not apply to a former Governor, Lieutenant 12 Governor, Attorney General, member of the Legislature, person 13 included in subparagraph (a) of paragraph (2) of subsection a. of 14 this section, or to the members of their immediate families. 15 (2) No person or any member of the person’s immediate family, 16 nor any partnership, firm, or corporation with which such person is 17 associated or in which the person has an interest, nor any partner, 18 officer, director, or employee while the person is associated with 19 such partnership, firm, or corporation, shall, within two years next 20 subsequent to the termination of the office or employment of such 21 person, hold, directly or indirectly, an interest in, or hold 22 employment with, or represent, appear for, or negotiate on behalf 23 of, any holder of, or applicant for, medical cannabis cultivator, 24 medical cannabis manufacturer, medical cannabis dispensary, or 25 clinical registrant permit issued pursuant to P.L.2009, c.307 26 (C.24:6I-1 et al.), or any holding or intermediary company with 27 respect thereto, in connection with any cause, application, or matter, 28 or any holding or intermediary company with respect to such holder 29 of, or applicant for, a medical cannabis cultivator, medical cannabis 30 manufacturer, medical cannabis dispensary, or clinical registrant 31 permit in connection with any phase of development, permitting, 32 licensure, or any other matter whatsoever related to medical 33 cannabis activity, except as provided in section 3 of P.L.2009, c.26 34 (C.52:13D-17.3), and except that: 35 (a) a member of the immediate family of a person may hold 36 employment with the holder of, or applicant for, medical cannabis 37 cultivator, medical cannabis manufacturer, medical cannabis 38 dispensary, or clinical registrant permit issued pursuant to P.L.2009, 39 c.307 (C.24:6I-1 et al.) if, in the judgment of the State Ethics 40 Commission, the Joint Legislative Committee on Ethical Standards, 41 or the Supreme Court, as appropriate, such employment will not 42 interfere with the responsibilities of the person and will not create a 43 conflict of interest, or reasonable risk of the public perception of a 44 conflict of interest, on the part of the person; 45 (b) an employee who is terminated as a result of a reduction in 46 the workforce at the agency where employed, other than an 47 employee who held a policy-making management position at any 48 time during the five years prior to termination of employment, may,

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1 at any time prior to the end of the two-year period, accept 2 employment with the holder of, or applicant for, a medical cannabis 3 cultivator, medical cannabis manufacturer, medical cannabis 4 dispensary, or clinical registrant permit if, in the judgment of the 5 State Ethics Commission, the Joint Legislative Committee on 6 Ethical Standards, or the Supreme Court, as appropriate, such 7 employment will not create a conflict of interest, or reasonable risk 8 of the public perception of a conflict of interest, on the part of the 9 employee. In no case shall the restrictions of this subsection apply 10 to a secretarial or clerical employee. Nothing herein contained shall 11 alter or amend the post-service or post-employment restrictions 12 applicable to members and employees of the Cannabis Regulatory 13 Commission pursuant to paragraph (2) of subsection c. of section 34 14 and section 35 of P.L. , c. (C. ) (pending before the 15 Legislature as this bill); and 16 (c) any partnership, firm, or corporation engaged in the practice 17 of law or in providing any other professional services with which 18 any person included in subparagraphs (a) and (c) of paragraph (1) of 19 subsection a. of this section, or a member of the immediate family 20 of that person, is associated, and any partner, officer, director, or 21 employee thereof, other than that person, or immediate family 22 member, may represent, appear for, or negotiate on behalf of any 23 holder of, or applicant for, a medical cannabis cultivator, medical 24 cannabis manufacturer, medical cannabis dispensary, or clinical 25 registrant permit in connection with any cause, application, or 26 matter or any holding company or intermediary company with 27 respect to such holder of, or applicant for, a medical cannabis 28 cultivator, medical cannabis manufacturer, medical cannabis 29 dispensary, or clinical registrant permit, or entity in connection with 30 any phase of development, permitting, or any other matter 31 whatsoever related to medical cannabis activity, and that person or 32 immediate family member shall not be barred from association with 33 such partnership, firm, or corporation, if for a period of two years 34 next subsequent to the termination of the person's office or 35 employment, the person or immediate family member (i) is 36 screened from personal participation in any such representation, 37 appearance or negotiation; and (ii) is associated with the 38 partnership, firm, or corporation in a position which does not entail 39 any equity interest in the partnership, firm, or corporation. The 40 exception provided in this paragraph shall not apply to a former 41 Governor, Lieutenant Governor, Attorney General, the President of 42 the Senate, the Speaker of the General Assembly, person included 43 in subparagraph (b) of paragraph (2) of subsection a. of this section, 44 or to the members of their immediate families. 45 d. This section shall not apply to the spouse of a State officer 46 or employee, which State officer or employee is without 47 responsibility for matters affecting casino or medical cannabis 48 activity, who becomes the spouse subsequent to the State officer's

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1 or employee's appointment or employment as a State officer or 2 employee and who is not individually or directly employed by a 3 holder of, or applicant for, a casino license [,] or medical cannabis 4 permit, or any holding or intermediary company thereof. 5 e. The Joint Legislative Committee on Ethical Standards and 6 the State Ethics Commission, as appropriate, shall forthwith 7 determine and publish, and periodically update, a list of those 8 positions in State government with responsibility for matters 9 affecting casino and medical cannabis activity. 10 f. (1) No person shall solicit or accept, directly or indirectly, 11 any complimentary service or discount from any casino applicant or 12 licensee which he knows or has reason to know is other than a 13 service or discount that is offered to members of the general public 14 in like circumstance. 15 (2) No person shall solicit or accept, directly or indirectly, any 16 complimentary service or discount from any holder of, or applicant 17 for, a medical cannabis cultivator, medical cannabis manufacturer, 18 medical cannabis dispensary, or clinical registrant permit issued 19 pursuant to P.L.2009, c.307 (C.24:6I-1 et al.), which the person 20 knows or has reason to know is other than a service or discount that 21 is offered to members of the general public in like circumstance. 22 g. (1) No person shall influence, or attempt to influence, by use 23 of his official authority, the decision of the [commission] Casino 24 Control Commission or the investigation of the [division] Division 25 of Gaming Enforcement in any application for casino licensure or in 26 any proceeding to enforce the provisions of this act or the 27 regulations of the commission. Any such attempt shall be promptly 28 reported to the Attorney General; provided, however, that nothing 29 in this section shall be deemed to proscribe a request for 30 information by any person concerning the status of any application 31 for licensure or any proceeding to enforce the provisions of this act 32 or the regulations of the commission. 33 (2) No person shall influence, or attempt to influence, by use of 34 the person’s official authority, the decision of the Cannabis 35 Regulatory Commission in any application for a medical cannabis 36 cultivator, medical cannabis manufacturer, medical cannabis 37 dispensary, or clinical registrant permit, or in any proceeding to 38 enforce the provisions of P.L.1981, c.142 (C.52:13D-17.2 et al.) or 39 the regulations of the Cannabis Regulatory Commission. Any such 40 attempt shall be promptly reported to the Attorney General; 41 provided, however, that nothing in this section shall be deemed to 42 proscribe a request for information by any person concerning the 43 status of any permit application, or any proceeding to enforce the 44 provisions of P.L.1981, c.142 (C.52:13D-17.2 et al.) or the 45 regulations of the Cannabis Regulatory Commission. 46 h. Any person who willfully violates the provisions of this 47 section is a disorderly person and shall be subject to a fine not to 48 exceed $1,000, or imprisonment not to exceed six months, or both.

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1 In addition, for violations of subsection c. of this section 2 occurring after the effective date of P.L.2005, c.382, a civil penalty 3 of not less than $500 nor more than $10,000 shall be imposed upon 4 a former State officer or employee or former special State officer or 5 employee of a State agency in the Executive Branch upon a finding 6 of a violation by the State Ethics Commission, which penalty may 7 be collected in a summary proceeding pursuant to the "Penalty 8 Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). 9 (cf: P.L.2013, c.27, s.35) 10 11 39. (New section) a. Law enforcement agencies in this State 12 shall not cooperate with or provide assistance to the government of 13 the United States or any agency thereof in enforcing the “Controlled 14 Substances Act,” 21 U.S.C. 801 et seq., solely for actions consistent 15 with P.L.2009, c.307 (C.24:6I-1 et al.), except pursuant to a valid 16 court order. 17 b. No agency or subdivision of an agency of this State may 18 refuse to perform any duty under P.L.2009, c.307 (C.24:6I-1 et al.) 19 on the basis that cultivation, manufacturing, processing, 20 transferring, transporting, furnishing, distributing, dispensing, 21 possessing, or using cannabis is prohibited by federal law. 22 c. The commission may not revoke or refuse to issue or renew 23 a permit pursuant to section 7 of P.L.2009, c.307 (C.24:6I-7) or 24 section 13 of P.L. , c. (C. ) (pending before the Legislature 25 as this bill) on the grounds that cultivation, manufacturing, 26 processing, transferring, transporting, furnishing, distributing, 27 dispensing, possessing, or using cannabis is prohibited by federal 28 law. 29 d. Nothing in this section shall be construed to limit the authority 30 of an agency or subdivision of any agency of this State to cooperate 31 with or assist the government of the United States or any agency 32 thereof, or the government of another state or agency thereof, in 33 matters pertaining to illegal interstate trafficking of marijuana, , 34 or cannabis items. 35 36 40. (New section) No contract shall be unenforceable on the 37 basis that cultivation, manufacturing, processing, transferring, 38 transporting, furnishing, distributing, dispensing, possessing, or 39 using cannabis is prohibited by federal law. No contract entered 40 into by a permit holder as permitted pursuant to a valid permit 41 issued by the commission, or by those who allow property to be 42 used by a permit holder as permitted pursuant to a valid permit 43 issued by the commission, shall be deemed unenforceable on the 44 basis that the actions or conduct permitted pursuant to the permit 45 are prohibited by federal law. 46 47 41. (New section) If any provision of P.L.2009, c.307 (C.24:6I- 48 1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.) or its application

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1 to any person or circumstance is held invalid, the invalidity does not 2 affect other provisions or applications of P.L.2009, c.307 (C.24:6I-1 3 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.) which can be 4 given effect without the invalid provision or application, and to this 5 end the provisions of P.L.2009, c.307 (C.24:6I-1 et al.) and 6 P.L.2015, c.158 (C.18A:40-12.22 et al.). 7 8 42. N.J.S.2C:35-18 is amended to read as follows: 9 2C:35-18. Exemption; Burden of Proof. a. If conduct is 10 authorized by the provisions of P.L.1970, c.226 (C.24:21-1 et seq.), 11 P.L.2009, c.307 (C.24:6I-1 et al.), or P.L.2015, c.158 (C.18A:40- 12 12.22 et al.), that authorization shall, subject to the provisions of 13 this section, constitute an exemption from criminal liability under 14 this chapter or chapter 36, and the absence of such authorization 15 shall not be construed to be an element of any offense in this 16 chapter or chapter 36. It is an affirmative defense to any criminal 17 action arising under this chapter or chapter 36 that the defendant is 18 the authorized holder of an appropriate registration, permit, or order 19 form or is otherwise exempted or excepted from criminal liability 20 by virtue of any provision of P.L.1970, c.226 (C.24:21-1 et seq.), 21 P.L.2009, c.307 (C.24:6I-1 et al.), or P.L.2015, c.158 (C.18A:40- 22 12.22 et al.). The affirmative defense established herein shall be 23 proved by the defendant by a preponderance of the evidence. It 24 shall not be necessary for the State to negate any exemption set 25 forth in this act or in any provision of Title 24 of the Revised 26 Statutes in any complaint, information, indictment, or other 27 pleading or in any trial, hearing, or other proceeding under this act. 28 b. No liability shall be imposed by virtue of this chapter or 29 chapter 36 upon any duly authorized State officer, engaged in the 30 enforcement of any law or municipal ordinance relating to 31 controlled dangerous substances or controlled substance analogs. 32 (cf: P.L.2015, c.158, s.3) 33 34 43. Section 1 of P.L.2015, c.158 (C.18A:40-12.22) is amended 35 to read as follows: 36 1. a. A board of education or chief school administrator of a 37 nonpublic school shall develop a policy authorizing parents, 38 guardians, and [primary] designated caregivers to administer 39 medical [marijuana] cannabis to a student while the student is on 40 school grounds, aboard a school bus, or attending a school- 41 sponsored event. 42 b. A policy adopted pursuant to subsection a. of this section 43 shall, at a minimum: 44 (1) require that the student be authorized to engage in the 45 medical use of [marijuana] cannabis pursuant to P.L.2009, c.307 46 (C.24:6I-1 et al.) and that the parent, guardian, or [primary] 47 designated caregiver be authorized to assist the student with the

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1 medical use of [marijuana] cannabis pursuant to P.L.2009, c.307 2 (C.24:6I-1 et al.); 3 (2) establish protocols for verifying the registration status and 4 ongoing authorization pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) 5 concerning the medical use of [marijuana] cannabis for the student 6 and the parent, guardian, or [primary] designated caregiver; 7 (3) expressly authorize parents, guardians, and [primary] 8 designated caregivers of students who have been authorized for the 9 medical use of [marijuana] cannabis to administer medical 10 [marijuana] cannabis to the student while the student is on school 11 grounds, aboard a school bus, or attending a school-sponsored 12 event; 13 (4) identify locations on school grounds where medical 14 [marijuana] cannabis may be administered; and 15 (5) prohibit the administration of medical [marijuana] cannabis 16 to a student by smoking or other form of inhalation while the 17 student is on school grounds, aboard a school bus, or attending a 18 school-sponsored event. 19 c. Medical [marijuana] cannabis may be administered to a 20 student while the student is on school grounds, aboard a school bus, 21 or attending school-sponsored events, provided that such 22 administration is consistent with the requirements of the policy 23 adopted pursuant to this section. 24 (cf: P.L.2015, c.158, s.1) 25 26 44. Section 2 of P.L.2015, c.158 (C.30:6D-5b) is amended to 27 read as follows: 28 2. a. The chief administrator of a facility that offers services 29 for persons with developmental disabilities shall develop a policy 30 authorizing a parent, guardian, or [primary] designated caregiver 31 authorized to assist a qualifying patient with the use of medical 32 [marijuana] cannabis pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) 33 to administer medical [marijuana] cannabis to a person who is 34 receiving services for persons with developmental disabilities at the 35 facility. 36 b. A policy adopted pursuant to subsection a. of this section 37 shall, at a minimum: 38 (1) require the person receiving services for persons with 39 developmental disabilities be a qualifying patient authorized for the 40 use of medical [marijuana] cannabis pursuant to P.L.2009, c.307 41 (C.24:6I-1 et al.), and that the parent, guardian, or [primary] 42 designated caregiver be authorized to assist the person with the 43 medical use of [marijuana] cannabis pursuant to P.L.2009, c.307 44 (C.24:6I-1 et al.); 45 (2) establish protocols for verifying the registration status and 46 ongoing authorization pursuant to P.L.2009, c.307 (C.24:6I-1 et al.)

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1 concerning the medical use of [marijuana] cannabis for the person 2 and the parent, guardian, or [primary] designated caregiver; 3 (3) expressly authorize parents, guardians, and [primary] 4 designated caregivers to administer medical [marijuana] cannabis 5 to the person receiving services for persons with developmental 6 disabilities while the person is at the facility; and 7 (4) identify locations at the facility where medical [marijuana] 8 cannabis may be administered. 9 c. Medical [marijuana] cannabis may be administered to a 10 person receiving services for persons with developmental 11 disabilities at a facility that offers such services while the person is 12 at the facility, provided that such administration is consistent with 13 the requirements of the policy adopted pursuant to this section and 14 the provisions of P.L.2009, c.307 (C.24:6I-1 et al.). 15 d. Nothing in this section shall be construed to authorize 16 medical [marijuana] cannabis to be smoked in any place where 17 smoking is prohibited pursuant to N.J.S.2C:33-13. 18 (cf: P.L.2015, c.158, s.2) 19 20 45. (New section) a. The chief administrator of a facility that 21 offers behavioral health care services shall develop a policy 22 authorizing a parent, guardian, or designated caregiver authorized to 23 assist a qualifying patient with the use of medical cannabis pursuant 24 to P.L.2009, c.307 (C.24:6I-1 et al.) to administer medical cannabis 25 to a person who is receiving behavioral health care services at the 26 facility. 27 b. A policy adopted pursuant to subsection a. of this section 28 shall, at a minimum: 29 (1) require the person receiving behavioral health care services 30 be a qualifying patient authorized for the use of medical cannabis 31 pursuant to P.L.2009, c.307 (C.24:6I-1 et al.), and that the parent, 32 guardian, or designated caregiver be authorized to assist the person 33 with the medical use of cannabis pursuant to P.L.2009, c.307 34 (C.24:6I-1 et al.); 35 (2) establish protocols for verifying the registration status and 36 ongoing authorization pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) 37 concerning the medical use of cannabis for the person and the 38 parent, guardian, or designated caregiver; 39 (3) expressly authorize parents, guardians, and designated 40 caregivers to administer medical cannabis to the person receiving 41 behavioral health care services while the person is at the facility; 42 and 43 (4) identify locations at the facility where medical cannabis may 44 be administered. 45 c. Medical cannabis may be administered to a person receiving 46 behavioral health care services at a facility that offers such services 47 while the person is at the facility, provided that such administration

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1 is consistent with the requirements of the policy adopted pursuant to 2 this section and the provisions of P.L.2009, c.307 (C.24:6I-1 et al.). 3 d. Nothing in this section shall be construed to authorize 4 medical cannabis to be smoked in any place where smoking is 5 prohibited pursuant to N.J.S.2C:33-13. 6 e. As used in this section, "behavioral health care services" 7 means procedures or services provided by a health care practitioner 8 to a patient for the treatment of a mental illness or emotional 9 disorder that is of mild to moderate severity. "Behavioral health 10 care" and "behavioral health care services" shall not include 11 procedures or services that are provided for the treatment of severe 12 mental illness, severe emotional disorder, or any drug or alcohol use 13 disorder. 14 15 46. Section 11 of P.L.2009, c.307 (C.45:1-45.1) is amended to 16 read as follows: 17 11. a. A [physician] health care practitioner who [provides a 18 certification] authorizes a patient for the medical use of cannabis or 19 who provides a written instruction for the medical use of 20 [marijuana] cannabis to a qualifying patient pursuant to P.L.2009, 21 c.307 (C.24:6I-1 et al.) and [any alternative treatment center] each 22 medical cannabis dispensary and clinical registrant shall furnish to 23 the Director of the Division of Consumer Affairs in the Department 24 of Law and Public Safety such information, on a daily basis and in 25 such a format [and at such intervals,] as the director shall prescribe 26 by regulation, for inclusion in a system established to monitor the 27 dispensation of [marijuana] cannabis in this State for medical use 28 as authorized by the provisions of P.L.2009, c.307 (C.24:6I-1 et 29 al.), which system shall serve the same purpose as, and be cross- 30 referenced with, the electronic system for monitoring controlled 31 dangerous substances established pursuant to section 25 of 32 P.L.2007, c.244 (C.45:1-45). 33 b. The Director of the Division of Consumer Affairs, pursuant 34 to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B- 35 1 et seq.), and in consultation with the Commissioner of Health 36 [and Senior Services], shall adopt rules and regulations to 37 effectuate the purposes of subsection a. of this section. 38 c. Notwithstanding any provision of P.L.1968, c.410 39 (C.52:14B-1 et seq.) to the contrary, the Director of the Division of 40 Consumer Affairs shall adopt, immediately upon filing with the 41 Office of Administrative Law and no later than the 90th day after 42 the effective date of P.L.2009, c.307 (C.24:6I-1 et al.), such 43 regulations as the director deems necessary to implement the 44 provisions of subsection a. of this section. Regulations adopted 45 pursuant to this subsection shall be effective until the adoption of 46 rules and regulations pursuant to subsection b. of this section and 47 may be amended, adopted, or readopted by the director in

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1 accordance with the requirements of P.L.1968, c.410 (C.52:14B- 2 1 et seq.). 3 (cf: P.L.2009, c.307, s.11) 4 5 47. Section 7 of P.L.1991, c.378 (C.45:9-27.16) is amended to 6 read as follows: 7 7. a. A physician assistant may perform the following 8 procedures: 9 (1) Approaching a patient to elicit a detailed and accurate 10 history, perform an appropriate physical examination, identify 11 problems, record information, and interpret and present information 12 to the supervising physician; 13 (2) Suturing and caring for wounds including removing sutures 14 and clips and changing dressings, except for facial wounds, 15 traumatic wounds requiring suturing in layers, and infected wounds; 16 (3) Providing patient counseling services and patient education 17 consistent with directions of the supervising physician; 18 (4) Assisting a physician in an inpatient setting by conducting 19 patient rounds, recording patient progress notes, determining and 20 implementing therapeutic plans jointly with the supervising 21 physician, and compiling and recording pertinent narrative case 22 summaries; 23 (5) Assisting a physician in the delivery of services to patients 24 requiring continuing care in a private home, nursing home, 25 extended care facility, or other setting, including the review and 26 monitoring of treatment and therapy plans; and 27 (6) Referring patients to, and promoting their awareness of, 28 health care facilities and other appropriate agencies and resources in 29 the community. 30 (7) (Deleted by amendment, P.L.2015, c.224) 31 b. A physician assistant may perform the following procedures 32 only when directed, ordered, or prescribed by the supervising 33 physician, or when performance of the procedure is delegated to the 34 physician assistant by the supervising physician as authorized under 35 subsection d. of this section: 36 (1) Performing non-invasive laboratory procedures and related 37 studies or assisting duly licensed personnel in the performance of 38 invasive laboratory procedures and related studies; 39 (2) Giving injections, administering medications, and requesting 40 diagnostic studies; 41 (3) Suturing and caring for facial wounds, traumatic wounds 42 requiring suturing in layers, and infected wounds; 43 (4) Writing prescriptions or ordering medications in an inpatient 44 or outpatient setting in accordance with section 10 of P.L.1991, 45 c.378 (C.45:9-27.19); [and] 46 (5) Prescribing the use of patient restraints; and 47 (6) Authorizing qualifying patients for the medical use of 48 cannabis and issuing written instructions for medical cannabis to

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1 registered qualifying patients pursuant to P.L.2009, c.307 (C.24:6I- 2 1 et al.). 3 c. A physician assistant may assist a supervising surgeon in the 4 operating room when a qualified assistant physician is not required 5 by the board and a second assistant is deemed necessary by the 6 supervising surgeon. 7 d. A physician assistant may perform medical services beyond 8 those explicitly authorized in this section, when such services are 9 delegated by a supervising physician with whom the physician 10 assistant has signed a delegation agreement pursuant to section 8 of 11 P.L.1991, c.378 (C.45:9-27.17). The procedures delegated to a 12 physician assistant shall be limited to those customary to the 13 supervising physician's specialty and within the supervising 14 physician's and the physician assistant's competence and training. 15 e. Notwithstanding subsection d. of this section, a physician 16 assistant shall not be authorized to measure the powers or range of 17 human vision, determine the accommodation and refractive states of 18 the human eye, or fit, prescribe, or adapt lenses, prisms, or frames 19 for the aid thereof. Nothing in this subsection shall be construed to 20 prohibit a physician assistant from performing a routine visual 21 screening. 22 (cf: P.L.2015, c.224, s.7) 23 24 48. Section 10 of P.L.1991, c.378 (C.45:9-27.19) is amended to 25 read as follows: 26 10. A physician assistant may order, prescribe, dispense, and 27 administer medications and medical devices and issue written 28 instructions to registered qualifying patients for medical cannabis to 29 the extent delegated by a supervising physician. 30 a. Controlled dangerous substances may only be ordered or 31 prescribed if: 32 (1) a supervising physician has authorized a physician assistant 33 to order or prescribe Schedule II, III, IV, or V controlled dangerous 34 substances in order to: 35 (a) continue or reissue an order or prescription for a controlled 36 dangerous substance issued by the supervising physician; 37 (b) otherwise adjust the dosage of an order or prescription for a 38 controlled dangerous substance originally ordered or prescribed by 39 the supervising physician, provided there is prior consultation with 40 the supervising physician; 41 (c) initiate an order or prescription for a controlled dangerous 42 substance for a patient, provided there is prior consultation with the 43 supervising physician if the order or prescription is not pursuant to 44 subparagraph (d) of this paragraph; or 45 (d) initiate an order or prescription for a controlled dangerous 46 substance as part of a treatment plan for a patient with a terminal 47 illness, which for the purposes of this subparagraph means a

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1 medical condition that results in a patient's life expectancy being 12 2 months or less as determined by the supervising physician; 3 (2) the physician assistant has registered with, and obtained 4 authorization to order or prescribe controlled dangerous substances 5 from, the federal Drug Enforcement Administration and any other 6 appropriate State and federal agencies; and 7 (3) the physician assistant complies with all requirements which 8 the board shall establish by regulation for the ordering, prescription, 9 or administration of controlled dangerous substances, all applicable 10 educational program requirements, and continuing professional 11 education programs approved pursuant to section 16 of P.L.1991, 12 c.378 (C.45:9-27.25). 13 b. (Deleted by amendment, P.L.2015, c.224) 14 c. (Deleted by amendment, P.L.2015, c.224) 15 d. In the case of an order or prescription for a controlled 16 dangerous substance or written instructions for medical cannabis, 17 the physician assistant shall print on the order or prescription or the 18 written instructions the physician assistant's Drug Enforcement 19 Administration registration number. 20 e. The dispensing of medication or a medical device by a 21 physician assistant shall comply with relevant federal and State 22 regulations, and shall occur only if: (1) pharmacy services are not 23 reasonably available; (2) it is in the best interest of the patient; or 24 (3) the physician assistant is rendering emergency medical 25 assistance. 26 f. A physician assistant may request, receive, and sign for 27 prescription drug samples and may distribute those samples to 28 patients. 29 g. A physician assistant may issue written instructions to a 30 registered qualifying patient for medical cannabis pursuant to 31 section 10 of P.L.2009, c.307 (C.24:6I-10) only if: 32 (1) a supervising physician has authorized the physician 33 assistant to issue written instructions to registered qualifying 34 patients; 35 (2) the physician assistant verifies the patient’s status as a 36 registered qualifying patient; and 37 (3) the physician assistant complies with the requirements for 38 issuing written instructions for medical cannabis established 39 pursuant to P.L.2009, c.307 (C.24:6I-1 et al.). 40 (cf: P.L.2015, c.224, s.7) 41 42 49. Section 10 of P.L.1991, c.377 (C.45:11-49) is amended to 43 read as follows: 44 10. a. In addition to all other tasks which a registered 45 professional nurse may, by law, perform, an advanced practice 46 nurse may manage preventive care services and diagnose and 47 manage deviations from wellness and long-term illnesses, consistent

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1 with the needs of the patient and within the scope of practice of the 2 advanced practice nurse, by: 3 (1) initiating laboratory and other diagnostic tests; 4 (2) prescribing or ordering medications and devices, as 5 authorized by subsections b. and c. of this section; and 6 (3) prescribing or ordering treatments, including referrals to 7 other licensed health care professionals, and performing specific 8 procedures in accordance with the provisions of this subsection. 9 b. An advanced practice nurse may order medications and 10 devices in the inpatient setting, subject to the following conditions: 11 (1) the collaborating physician and advanced practice nurse 12 shall address in the joint protocols whether prior consultation with 13 the collaborating physician is required to initiate an order for a 14 controlled dangerous substance; 15 (2) the order is written in accordance with standing orders or 16 joint protocols developed in agreement between a collaborating 17 physician and the advanced practice nurse, or pursuant to the 18 specific direction of a physician; 19 (3) the advanced practice nurse authorizes the order by signing 20 the nurse's own name, printing the name and certification number, 21 and printing the collaborating physician's name; 22 (4) the physician is present or readily available through 23 electronic communications; 24 (5) the charts and records of the patients treated by the advanced 25 practice nurse are reviewed by the collaborating physician and the 26 advanced practice nurse within the period of time specified by rule 27 adopted by the Commissioner of Health pursuant to section 13 of 28 P.L.1991, c.377 (C.45:11-52); 29 (6) the joint protocols developed by the collaborating physician 30 and the advanced practice nurse are reviewed, updated, and signed 31 at least annually by both parties; and 32 (7) the advanced practice nurse has completed six contact hours 33 of continuing professional education in pharmacology related to 34 controlled substances, including pharmacologic therapy, addiction 35 prevention and management, and issues concerning prescription 36 opioid drugs, including responsible prescribing practices, 37 alternatives to opioids for managing and treating pain, and the risks 38 and signs of opioid abuse, addiction, and diversion, in accordance 39 with regulations adopted by the New Jersey Board of Nursing. The 40 six contact hours shall be in addition to New Jersey Board of 41 Nursing pharmacology education requirements for advanced 42 practice nurses related to initial certification and recertification of 43 an advanced practice nurse as set forth in N.J.A.C.13:37-7.2. 44 c. An advanced practice nurse may prescribe medications and 45 devices in all other medically appropriate settings, subject to the 46 following conditions: 47 (1) the collaborating physician and advanced practice nurse 48 shall address in the joint protocols whether prior consultation with

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1 the collaborating physician is required to initiate a prescription for a 2 controlled dangerous substance; 3 (2) the prescription is written in accordance with standing orders 4 or joint protocols developed in agreement between a collaborating 5 physician and the advanced practice nurse, or pursuant to the 6 specific direction of a physician; 7 (3) the advanced practice nurse writes the prescription on a New 8 Jersey Prescription Blank pursuant to P.L.2003, c.280 (C.45:14-40 9 et seq.), signs the nurse's own name to the prescription and prints 10 the nurse's name and certification number; 11 (4) the prescription is dated and includes the name of the patient 12 and the name, address, and telephone number of the collaborating 13 physician; 14 (5) the physician is present or readily available through 15 electronic communications; 16 (6) the charts and records of the patients treated by the advanced 17 practice nurse are periodically reviewed by the collaborating 18 physician and the advanced practice nurse; 19 (7) the joint protocols developed by the collaborating physician 20 and the advanced practice nurse are reviewed, updated, and signed 21 at least annually by both parties; and 22 (8) the advanced practice nurse has completed six contact hours 23 of continuing professional education in pharmacology related to 24 controlled substances, including pharmacologic therapy, addiction 25 prevention and management, and issues concerning prescription 26 opioid drugs, including responsible prescribing practices, 27 alternatives to opioids for managing and treating pain, and the risks 28 and signs of opioid abuse, addiction, and diversion, in accordance 29 with regulations adopted by the New Jersey Board of Nursing. The 30 six contact hours shall be in addition to New Jersey Board of 31 Nursing pharmacology education requirements for advanced 32 practice nurses related to initial certification and recertification of 33 an advanced practice nurse as set forth in N.J.A.C.13:37-7.2. 34 d. The joint protocols employed pursuant to subsections b. and 35 c. of this section shall conform with standards adopted by the 36 Director of the Division of Consumer Affairs pursuant to section 12 37 of P.L.1991, c.377 (C.45:11-51) or section 10 of P.L.1999, c.85 38 (C.45:11-49.2), as applicable. 39 e. (Deleted by amendment, P.L.2004, c.122.) 40 f. An attending advanced practice nurse may determine and 41 certify the cause of death of the nurse's patient and execute the 42 death certification pursuant to R.S.26:6-8 if no collaborating 43 physician is available to do so and the nurse is the patient's primary 44 caregiver. 45 g. An advanced practice nurse may authorize qualifying 46 patients for the medical use of cannabis and issue written 47 instructions for medical cannabis to registered qualifying patients, 48 subject to the following conditions:

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1 (1) the collaborating physician and advanced practice nurse 2 shall address in the joint protocols whether prior consultation with 3 the collaborating physician is required to authorize a qualifying 4 patient for the medical use of cannabis or issue written instructions 5 for medical cannabis; 6 (2) the authorization for the medical use of cannabis or issuance 7 of written instructions for cannabis is in accordance with standing 8 orders or joint protocols developed in agreement between a 9 collaborating physician and the advanced practice nurse, or 10 pursuant to the specific direction of a physician; 11 (3) the advanced practice nurse signs the nurse's own name to 12 the authorization or written instruction and prints the nurse's name 13 and certification number; 14 (4) the authorization or written instruction is dated and includes 15 the name of the qualifying patient and the name, address, and 16 telephone number of the collaborating physician; 17 (5) the physician is present or readily available through 18 electronic communications; 19 (6) the charts and records of qualifying patients treated by the 20 advanced practice nurse are periodically reviewed by the 21 collaborating physician and the advanced practice nurse; 22 (7) the joint protocols developed by the collaborating physician 23 and the advanced practice nurse are reviewed, updated, and signed 24 at least annually by both parties; and 25 (8) the advanced practice nurse complies with the requirements 26 for authorizing qualifying patients for the medical use of cannabis 27 and for issuing written instructions for medical cannabis established 28 pursuant to P.L.2009, c.307 (C.24:6I-1 et al.). 29 (cf: P.L.2017, c.28, s.15) 30 31 50. Section 5 of P.L.2009, c.307 (C.24:6I-5) is repealed. 32 33 51. This act shall take effect immediately. 34 35 36 STATEMENT 37 38 This bill makes various revisions to the “Compassionate Use 39 Medical Marijuana Act,” P.L.2009, c.307 (C.24:6I-1 et al.), 40 including renaming the act the “Jake Honig Compassionate Use 41 Medical Cannabis Act,” establishing a new Cannabis Regulatory 42 Commission (CRC) to oversee the medical cannabis program; 43 revising the requirements to authorize a patient for medical 44 cannabis; revising the permit and operational requirements for 45 alternative treatment centers (ATCs), including establishing discrete 46 cultivator, manufacturer, and dispensary permits; creating a new 47 clinical registrant permit; establishing a medical cannabis home

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1 cultivation pilot program; and establishing additional protections 2 for registry cardholders. 3 4 Cannabis Regulatory Commission 5 6 The CRC will consist of five, full-time members. At least one 7 member is to be a State representative of a national organization or 8 State branch of such an organization with a stated mission of 9 studying, advocating, or adjudicating against forms of social 10 injustice or inequality, at least one member is to have a medical 11 background, and at least one member is to have a background in 12 agriculture, horticulture, or both. Additionally, all members are to 13 possess education, training, or experience with: legal, policy, or 14 criminal justice issues; corporate or industry management, finance, 15 securities, or production or distribution; medicine or pharmacology; 16 or public health, mental health, or substance use disorders. 17 The initially designated chair and two other initial members will 18 be appointed by the Governor, another initial member will be 19 appointed by the Governor upon the recommendation of the Senate 20 President, and the final initial member will be appointed by the 21 Governor upon the recommendation of the Speaker of the General 22 Assembly. Thereafter, the Governor will appoint, with the advice 23 and consent of the Senate, the chair and the two other members not 24 requiring any legislative leadership recommendation. The 25 appointments based upon based upon the Senate President’s and 26 Speaker’s recommendation would continue to be direct 27 gubernatorial appointments. All five members will serve terms of 28 five years, although the initial terms would include one four-year 29 term and one three-year term in order to stagger reappointments. 30 The chair will be provided a salary not to exceed $141,000, and the 31 other members provided a salary not to exceed $125,000. 32 The CRC will assume responsibility for oversight, 33 administration, and enforcement of the medical cannabis program 34 from the Department of Health at such time as at such time as the 35 members of the commission are appointed and the commission first 36 organizes. The bill will permit, based on the transfer of 37 responsibility, employees of the department who performed the 38 duties of any position to be filled by the CRC a one-time right of 39 first refusal offer of employment. Any department employee who is 40 employed by the CRC in this manner will retain seniority, and all 41 rights related to seniority, that the employee had with the 42 department as of the last day of employment with the department. 43 The CRC will be charged with establishing a plan of 44 organization, and employing personnel as it deems necessary to 45 operate under the direct supervision of a full-time executive 46 director. The new executive director position will be initially filled 47 directly by the Governor, and thereafter appointed by the Governor 48 with the Senate’s advice and consent.

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1 One mandatory aspect to the CRC’s organization plan will be the 2 inclusion of an Office of Minority, Disabled Veterans, and Women 3 Cannabis Business Development, operating under the supervision of 4 a director appointed by the Governor. This office is to establish and 5 administer, under the direction of the CRC, unified practices and 6 procedures for promoting participation in the medical cannabis 7 industry by persons from socially and economically disadvantaged 8 communities, including by prospective and existing minority owned 9 and women’s owned businesses and disabled veterans’ businesses. 10 These unified practices and procedures are to include a business’ 11 certification and subsequent recertification at regular intervals as a 12 minority owned or women’s owned business, or a disabled 13 veterans’ business, in accordance with eligibility criteria and a 14 certification application process established by the CRC in 15 consultation with the office. 16 The effectiveness of these methods will be measured by whether 17 the office’s actions result in at least 30 percent of the total number 18 of ATC permits issued by the CRC being issued to businesses 19 certified by the office; the effectiveness will be further assessed by 20 considering whether the actions resulted in at least 15 percent of 21 new permits being issued to certified minority owned businesses, 22 and at least 15 percent of new permits being issued to certified 23 women-owned and disabled veterans’ businesses. The office, in 24 support of these efforts, is to conduct advertising and promotional 25 campaigns, as well as sponsor seminars and informational 26 programs, directed toward those persons and prospective and 27 existing certified businesses, which would address medical cannabis 28 business management, marketing, and other practical business 29 matters. 30 31 Ethical and Conflicts-of-Interest Requirements for the CRC 32 33 The members of the CRC and all CRC employees will be subject 34 to ethical and conflicts-of-interest restrictions, addressing activities 35 engaged in prior to, during, and following service with the CRC. 36 For instance, a person generally may not be an appointed member 37 or employee of the CRC if, during the period commencing three 38 years prior to appointment or employment, the person held any 39 direct or indirect interest in, or any employment by, a holder of or 40 applicant for an ATC permit, unless the person’s prior interest 41 would not, in the opinion of the CRC, interfere with the person’s 42 obligations of appointment or employment. Additionally, for a 43 period of two years commencing from the date that a member’s or 44 employee’s service terminates, that former member or employee 45 will not be permitted to hold any direct or indirect interest in, or any 46 employment by, a holder of or applicant for an ATC permit; 47 provided that the two-year post-service restriction would not apply 48 to secretarial or clerical employees.

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1 At the time each member and employee commences service, with 2 the exception of secretarial and clerical employees, the member or 3 employee will be required to file a financial disclosure statement 4 with the State Ethics Commission listing all assets and liabilities, 5 property and business interests, and sources of income for the 6 person and for the person’s spouse or domestic or civil union 7 partner. Additionally, CRC members are to provide the same 8 information for each dependent child or stepchild of the member, 9 and of the member’s spouse or domestic or civil union partner, who 10 resides in the same household as the member. 11 Members and employees will generally be subject to the “New 12 Jersey Conflicts of Interest Law,” P.L.1971, c.182 (C.52:13D-12 et 13 seq.), as well as a Code of Ethics promulgated by the CRC that is 14 modeled upon the Code of Judicial Conduct of the American Bar 15 Association. All members and employees will be prohibited from 16 using any official authority to interfere with or affect the result of 17 an election or nomination for office, coerce or advise any person to 18 contribute anything of value to another person or organization for 19 political purposes, or take active part in any political campaign. For 20 the members of the CRC, the executive director, and any other 21 employee holding a supervisory or policy-making management 22 position, the bill also provides a prohibition on making any political 23 contributions to candidates or campaigns. A violation of this 24 prohibition constitutes a crime of the fourth degree, which is 25 punishable by imprisonment for up to 18 months, a fine of up to 26 $10,000, or both. 27 The bill also revises the “New Jersey Conflicts of Interest Law” 28 to establish restrictions on various State officers or employees, the 29 Governor and full-time professionals employed in the Governor’s 30 Office, full-time members of the Judiciary, and various officers of 31 the municipality in which an ATC is located. These restrictions 32 concern not only their own activities, but the activities of their 33 associated partnerships, firms, or corporations, and their family 34 members in connection with either employment or another interest 35 in, or representation of, current ATCs. These restrictions are 36 similar to the restrictions that apply to these people and businesses 37 under the current law concerning casino licensees and applicants, 38 and casino-related activities, and include a general prohibition on 39 employment, representation, appearance for, or negotiation on 40 behalf of, any or permit holder or applicant in connection with any 41 cause, application, or matter, and these restrictions can carry over 42 into the post-employment or post-service period following the 43 departure of a person from State or local employment or office. 44 The ethical and conflicts-of-interest restrictions will be enforced 45 by the State Ethics Commission, and any person found to have 46 committed a violation will be subject to a civil penalty of not less 47 than $500 or more than $10,000. Additionally, any willful violation 48 of these restrictions, other than making a prohibited political

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1 contribution, will constitute a disorderly persons offense, 2 punishable by a term of imprisonment of up to six months, a fine of 3 up to $1,000, or both. 4 If the CRC finds that a holder of or applicant for an ATC permit 5 committed a violation involving a CRC member or employee with 6 respect to pre-service activities, activities during service, or post- 7 service activities, the permit holder or applicant will be subject to a 8 civil penalty of not less than $500 or more than $10,000, and 9 possible permit revocation or suspension, or denial of an 10 application, as applicable. 11 12 Patient and Caregiver Requirements 13 14 Current law sets forth an enumerated list of debilitating medical 15 conditions that can qualify a patient for the medical use of cannabis. 16 The bill changes the term “debilitating medical condition” to 17 “qualifying medical condition,” and updates and revises the list of 18 conditions in certain ways, including adding additional conditions 19 and providing that medical cannabis may be used as a treatment of 20 first resort for any condition included in the list, which are: seizure 21 disorder, including epilepsy; intractable skeletal muscular 22 spasticity; post-traumatic stress disorder; glaucoma; positive status 23 for human immunodeficiency virus; acquired immune deficiency 24 syndrome; cancer; amyotrophic lateral sclerosis; multiple sclerosis; 25 muscular dystrophy; inflammatory bowel disease, including Crohn's 26 disease; terminal illness, if the patient has a prognosis of less than 27 12 months of life; anxiety; migraine; Tourette’s syndrome; 28 dysmenorrhea; chronic pain; opioid use disorder; or any other 29 medical condition or its treatment that is approved by the CRC. 30 The bill expands the list of professionals who can authorize 31 patients for the medical use of cannabis. Current law only allows 32 physicians to provide this authorization; the bill provides that 33 physician assistants and advanced practice nurses may authorize 34 patients for medical cannabis as well, and eliminates the 35 requirement for the professional to have a bona fide provider- 36 patient relationship with the patient. The bill provides that health 37 care practitioners will not be required to register with the CRC, or 38 be publicly listed in any CRC registry, as a condition of authorizing 39 patients for medical cannabis. Practitioners will be prohibited from 40 authorizing themselves or members of their immediate family for 41 medical cannabis. 42 The bill provides that, in order to authorize a qualifying patient 43 who is a minor for medical cannabis, the practitioner will be 44 required to either be a certified pediatric specialist or obtain written 45 confirmation from a certified pediatric specialist establishing that, 46 following examination of the patient or a review of the patient’s 47 record, the minor patient is likely to receive therapeutic or palliative 48 benefits from the medical use of cannabis to treat or alleviate

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1 symptoms associated with the patient’s qualifying medical 2 condition. 3 With regard to caregivers, current law provides that each patient 4 may have only one primary caregiver and that a person may serve 5 as primary caregiver to no more than one patient at a time. The bill 6 changes the term “primary caregiver” to “designated caregiver,” 7 and provides that each caregiver may serve up to two patients at one 8 time and that each patient may have up to two designated caregivers 9 at one time. Patients may petition the CRC for approval to have 10 more than two designated caregivers. An immediate family 11 member of a patient will not be required to undergo a criminal 12 history record background check as a condition of serving as 13 designated caregiver. 14 The bill also establishes the position of “institutional caregiver,” 15 which is an employee of a health care facility who is authorized to 16 assist qualifying patients who are patients or residents at the health 17 care facility with the medical use of cannabis. An institutional 18 caregiver registration will be valid for one year. Each institutional 19 caregiver will be required to be a New Jersey resident, at least 18 20 years of age, and authorized, within the individual’s scope of 21 professional practice, to possess and administer controlled 22 dangerous substances to patients and residents at the facility. An 23 institutional caregiver will be required to undergo a criminal history 24 background check unless the individual has already done so as a 25 condition of professional licensure or certification. Medical 26 cannabis may be dispensed to an institutional caregiver if 27 authorized by the patient. There will be no limit to the number of 28 patients an institutional caregiver can serve at one time, provided 29 that the caregiver is able to meet the needs of all such patients and 30 attend to the caregiver’s other duties at the facility without 31 jeopardizing the health or safety of any patient or resident at the 32 facility. Facilities that choose to authorize the use of institutional 33 caregivers will be required to certify, with each caregiver 34 application, that the facility has established appropriate security 35 measures to prevent unauthorized access to medical cannabis to 36 guard against theft, diversion, and adulteration while the cannabis is 37 stored at the facility or is being transported to the facility by an 38 institutional caregiver; the facility has established protocols to 39 prevent adverse drug interactions between medical cannabis and 40 other medications; the facility will not charge a patient for medical 41 cannabis in excess of the actual cost of the medical cannabis plus 42 reasonable acquisition costs; and the facility will promptly notify 43 the CRC in the event that an institutional caregiver ceases to be 44 employed by the facility or is convicted of a crime. For the 45 purposes of the bill, “health care facility” includes a general acute 46 care hospital, nursing home, long term care facility, hospice care 47 facility, group home, facility that provides services to persons with

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1 developmental disabilities, behavioral health care facility, and 2 rehabilitation center. 3 The bill provides that qualifying patients and designated 4 caregivers who are registered with a medical cannabis program in 5 another state will be deemed to be qualifying patients and 6 designated caregivers for the purposes of New Jersey law for up to 7 six months, provided the individual possesses a valid registry card 8 and a photo identification card issued by the other state. Medical 9 cannabis may only be dispensed to an out-of-State patient or 10 caregiver pursuant to written instructions issued by a New Jersey 11 practitioner. After six months, the out-of-State registrant will be 12 prohibited from engaging in conduct related to medical cannabis in 13 New Jersey unless the individual is registered as a qualifying 14 patient or caregiver in New Jersey. The CRC is to seek to establish 15 medical cannabis reciprocity agreements with other states. 16 The bill allows the CRC to establish an alternate means to 17 identify and verify the registration status of patients and caregivers 18 other than the registry identification card currently in use. 19 20 Dispensing Requirements for Medical Cannabis 21 22 Current law provides that up to two ounces of medical cannabis 23 may be dispensed to a patient in a 30-day period. The bill provides 24 that, until July 1, 2020, the maximum amount that may be dispensed 25 will be three ounces, and commencing July 1, 2020, the maximum 26 amount will increase to four ounces. 27 The quantity restrictions will not apply to a patient receiving 28 hospice care or who is terminally ill; other patients may petition the 29 CRC for an exemption from the monthly quantity limits, which may 30 be granted if appropriate to the patient’s treatment needs. The CRC 31 is to establish recommended dosing guidelines for medical cannabis 32 products that are equivalent to one ounce of medical cannabis in 33 dried form. 34 Current law provides that physicians may issue multiple written 35 instructions authorizing up to a 90-day supply of medical cannabis, 36 provided that each instruction is issued for a legitimate medical 37 purpose, includes the earliest date on which the instruction becomes 38 valid, and does not present an undue risk of diversion or abuse. The 39 bill will allow practitioners to authorize up to a one year supply at 40 one time. 41 The bill requires the CRC to establish a process for patients to be 42 dispensed medical cannabis in quantities of up to a two week supply 43 during the pendency of the patient’s registration with the CRC; 44 additional two-week supplies may be dispensed until the 45 registration process is completed. The CRC is to establish 46 appropriate restrictions to protect against fraud, abuse, and 47 diversion.

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1 The bill removes a provision that limits access to edible forms of 2 medical cannabis, including oils, to qualifying patients who are 3 minors, and specifies that medical cannabis may be distributed in 4 transdermal, sublingual, and tincture forms, as well as in the forms 5 authorized under current law. Upon dispensing medical cannabis, 6 the medical cannabis dispensary or clinical registrant is to notify the 7 practitioner of the amount, strain, and form of medical cannabis 8 dispensed. 9 The bill provides that medical cannabis may be dispensed to a 10 patient by any medical cannabis dispensary or clinical registrant in 11 the State; under current law, patients are to be registered with, and 12 may only be dispensed medical cannabis from, a single ATC where 13 the patient is registered. The bill requires that, prior to dispensing 14 medical cannabis to a patient, the dispensary or clinical registrant 15 will be required to access a system currently maintained by the 16 Division of Consumer Affairs in the Department of Law and Public 17 Safety that tracks written instructions for, and dispensations of, 18 medical cannabis, in order to ascertain whether any medical 19 cannabis was dispensed to or on behalf of the patient within the 20 preceding 30 days. 21 The bill provides that a practitioner or an immediate family 22 member of a practitioner who authorizes patients for medical 23 cannabis may not hold any profit or ownership interest in an ATC. 24 A practitioner or the immediate family member of a practitioner 25 who applies for an ATC identification card is to certify that the 26 practitioner has not authorized any patients for medical cannabis in 27 the preceding 90 days. A person who violates the prohibition will 28 be guilty of a crime of the fourth degree, which is punishable by 29 imprisonment for up to 18 months, up to a $10,000 fine, or both. 30 The bill specifies that nothing in the prohibition will ban any 31 practitioner from serving on the governing board or medical 32 advisory board of an ATC, provided the practitioner receives no 33 special compensation or remuneration from the ATC, including 34 payments based on patient volumes or the number of authorizations 35 for medical cannabis the practitioner issues. 36 The bill additionally prohibits practitioners from authorizing 37 themselves or members of their immediate family for the medical 38 use of cannabis. 39 The bill requires the CRC to establish curricula for practitioners 40 and employees of medical cannabis dispensaries and clinical 41 registrants that are designed to assist with patient consultations 42 regarding the form, strain, quantity, and dosing of medical cannabis 43 appropriate to the patient’s qualifying medical condition. 44 Practitioners will be required to complete the health care 45 practitioner curriculum as a condition of authorizing patients for the 46 medical use of cannabis, and employees of medical cannabis 47 dispensaries and clinical registrants will be required to complete the 48 curriculum as a condition of registering with the CRC.

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1 Currently, medical cannabis is subject to the State sales tax. The 2 bill will phase out the sales tax over three years: commencing July 3 1, 2020, the tax will be four percent; commencing July 1, 2021, the 4 tax will be two percent; and commencing July 1, 2022, no sales tax 5 may be assessed against medical cannabis. Any sales tax assessed 6 on medical cannabis is to be exclusively appropriated to programs 7 for the treatment of mental health and substance use disorders. 8 9 Medical Cannabis Home Cultivation Pilot Program 10 11 The bill requires the Executive Director of the CRC to establish a 12 medical cannabis home cultivation pilot program, under which 13 select registered qualifying patients and their designated caregivers 14 will be authorized to cultivate medical cannabis plants in the 15 patient’s or caregiver’s own home for exclusive use by the patient 16 for medical purposes. The executive director will determine the 17 size, scope, and requirements for the pilot program, provided that, 18 at a minimum, the program will: include at least 100 patients, to be 19 selected by the executive director, including at least 10 who are 20 terminally ill and at least 10 who have intractable chronic pain; 21 allow the executive director to approve additional patients for 22 participation at any time; allow the cultivation of up to four mature 23 medical cannabis plants and up to 12 seedlings for each 24 participating patient; allow medical cannabis cultivators to sell, or 25 furnish without cost, cannabis seeds, seedlings, mature plants, and 26 plant cuttings to patients participating in the pilot program, 27 provided that any price charged to pilot program patients for 28 medical cannabis seeds, plants, or cuttings is to be reasonable and 29 may be subject to approval by the executive director; require each 30 participating patient to consent to random testing by the CRC or a 31 licensed testing laboratory of medical cannabis cultivated by the 32 patient or the patient’s designated caregiver to screen for disease, 33 impurities, and contaminants in plants and in usable cannabis 34 obtained from home cultivation; and allow pilot program patients to 35 continue to obtain medical cannabis from a medical cannabis 36 dispensary, provided that the total amount dispensed to the patient 37 by a dispensary in a 30-day period does not exceed the total 38 monthly quantity authorized for the patient by the patient’s health 39 care practitioner. 40 Pilot program patients, or their designated caregivers, will be 41 required to submit monthly reports to the executive director 42 concerning the number of medical cannabis plants cultivated, the 43 total amount of usable medical cannabis obtained, the quantity of 44 medical cannabis obtained by or for the patient from medical 45 cannabis dispensaries, and any legal, technical, or logistical issues 46 encountered during the home cultivation process. Additionally, 47 when a patient ceases to participate in the pilot program, the 48 executive director is to request information concerning the reasons

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1 why the patient ceased to participate for the purpose of determining 2 ways in which the CRC can facilitate patient participation and 3 address common challenges experienced by patients attempting 4 home cultivation. 5 The executive director will be authorized to modify the pilot 6 program as the executive director deems appropriate, which 7 modifications may include, but will not be limited to: revising the 8 number of patients authorized to participate; revising the number of 9 mature plants, seedlings, or both that may be cultivated by or for 10 patients at one time; or terminating the pilot program. 11 No later than 24 months after the date the pilot program is first 12 established, the executive director will be required to submit a 13 report to the Governor and to the Legislature concerning the pilot 14 program, including: the total number of seedlings and mature 15 medical cannabis plants cultivated; the total quantity of usable 16 medical cannabis obtained by or for pilot program patients; the total 17 quantity of medical cannabis obtained from medical cannabis 18 dispensaries by or for pilot program patients; an assessment of the 19 legal, logistical, and technical issues encountered by participating 20 patients and their designated caregivers; and any other data or 21 analysis concerning the pilot program as the executive director 22 deems necessary and appropriate. The executive director’s report is 23 to include a recommendation as to whether the pilot program should 24 be continued, expanded, modified, or terminated, as well as 25 recommendations for any administrative, executive, or legislative 26 action as the executive director deems appropriate. 27 28 ATC Application and Permitting Requirements 29 30 The bill establishes three distinct permit types in connection with 31 the production and dispensing of medical cannabis: medical 32 cannabis cultivators, medical cannabis manufacturers, and medical 33 cannabis dispensaries. The bill identifies the specific activities and 34 functions authorized for each permit type. The CRC will be 35 required to issue a request for new permit applications within 90 36 days of the effective date of the bill, and to make a determination on 37 any permit application within 90 days after the date of submission. 38 The CRC will be authorized to issue a conditional permit pending a 39 final decision on an application; the requirements for issuance of a 40 conditional permit and the scope of conduct authorized by a 41 conditional permit will be in the discretion of the CRC. 42 For a period of 18 months after the effective date of the bill, an 43 entity will be permitted to hold both a cultivator and a manufacturer 44 permit, but not a dispensary permit, and an entity that holds a 45 dispensary permit will not be permitted to hold either a cultivator or 46 manufacturer permit. After 18 months, an entity will be authorized 47 to concurrently hold one of each permit type, for a total of up to 48 three permits. However, the bill provides that the CRC is to issue

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1 six new plenary ATC permits that are not subject to these 2 restrictions; the six ATCs will be deemed to concurrently hold all 3 three permit types. These restrictions will also not apply to ATCs 4 that were issued a permit prior to the effective date of the bill or 5 that were issued a permit after the effective date of the bill pursuant 6 to an application submitted prior to the effective date of the bill, 7 which will be deemed to hold all three permit types. Any ATC 8 issued a permit prior to the effective date of the bill and any ATCs 9 issued a permit after the effective date of the bill pursuant to an 10 application submitted prior to the effective date of the bill will be 11 authorized to hold any satellite dispensary permit approved 12 pursuant to an application submitted prior to, or within 18 months 13 after, the effective date of the bill. No new satellite dispensaries 14 will be approved. The six new ATCs that are expressly exempt 15 from the ownership restrictions under the bill will be authorized to 16 establish and maintain up to one satellite dispensary, provided the 17 application for the dispensary is submitted within 18 months after 18 the effective date of the bill. 19 The CRC will be required to specify by regulation the number of 20 new permits of each type that it will authorize in the first year 21 following the effective date of the bill, and thereafter periodically 22 evaluate whether the current number of permits is sufficient to meet 23 the needs of qualifying patients and issue requests for new 24 applications as needed. 25 The bill sets forth the specific information to be considered when 26 reviewing new permit applications, which includes specific 27 information concerning the applicant’s operational experience, 28 workforce development plan, community impact analysis, security 29 capabilities, storage systems, emergency management plan, and 30 proposed location, along with any other criteria the executive 31 director deems appropriate. The CRC will determine the weight to 32 be afforded to each criterion. 33 Applicants may submit multiple permit applications, with a 34 separate application for each proposed facility; the bill establishes 35 procedures for determining which permit to award to an applicant 36 who scores high enough to be awarded multiple permits of the same 37 type. 38 The CRC will be required to conduct a disparity study to 39 evaluate the adverse effects of the State’s drug laws on New Jersey 40 communities to determine whether race-based measures should be 41 considered when issuing new medical cannabis cultivator, 42 manufacturer, and dispensary permits, and incorporate the policies, 43 practices, protocols, standards, and criteria developed by the Office 44 of Minority, Disabled Veterans, and Women Medical Cannabis 45 Business Development to promote participation in the medical 46 cannabis industry by persons from socially and economically 47 disadvantaged communities. At least 15 percent of the total number 48 of new permits are to be issued to minority-owned businesses, and

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1 an additional 15 percent of the total number of new permits are to 2 be issued to women-owned or disabled veteran-owned businesses. 3 The CRC is to grant special consideration to an applicant for an 4 integrated curriculum permit or “IC permit,” pursuant to which the 5 applicant establishes an agreement with an institution of higher 6 education to create an integrated curriculum involving the 7 theoretical or practical application of medical , 8 manufacturing, or dispensing to an area of academic study. 9 Integrated curricula are subject to approval by the CRC and the 10 Office of the Secretary of Higher Education. If an IC permit 11 holder’s agreement with an institution of higher education ends, the 12 IC permit holder will have six months to establish a new integrated 13 curriculum or the IC permit will be revoked, unless the CRC 14 determines that the entity should be allowed to retain the permit. 15 The CRC may establish incentives to encourage applicants to seek 16 IC permits, such as revised permit fees. 17 Current law provides that an ATC permit is valid for one year. 18 Under the bill, an initial medical cannabis cultivator, manufacturer, 19 or dispensary permit will be valid for three years and will be 20 renewable on a biennial basis. 21 The bill creates a new permit type, clinical registrant, which will 22 authorize the permit holder to engage in all conduct related to the 23 cultivation, manufacturing, and dispensing of medical cannabis and 24 medical cannabis products as is authorized for other ATC permit 25 holders. The clinical registrant will be required to enter into a 26 contractual relationship with an academic medical center, which is a 27 facility located in New Jersey that has faculty practices in addiction 28 medicine and pain management, has a graduate medical training 29 program that includes primary care and specialized medicine, is the 30 principal teaching affiliate of a New Jersey medical school, and has 31 the ability to conduct research related to cannabis. If the facility is 32 part of a health care system, the health care system is required to be 33 principally located in New Jersey in order for the facility to qualify 34 as an academic medical center. 35 Academic medical centers will engage in clinical research related 36 to medical cannabis in order to advise the affiliated clinical 37 registrant concerning patient health and safety, medical 38 applications, and the dispensing and management of controlled 39 dangerous substances. Clinical registrant applicants will be 40 required to demonstrate at least $15 million in capital. 41 A clinical registrant permit will be valid for the term of the 42 contractual relationship, and may be renewed based upon the 43 clinical registrant renewing its contractual relationship with the 44 academic medical center. A clinical registrant permit may not be 45 sold or transferred. Each clinical registrant may contract with no 46 more than one academic medical center. 47 Clinical registrants will be authorized to serve all qualifying 48 patients, as well as qualifying patients who agree to participate in

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1 clinical research. Clinical registrants may operate from more than 2 one location and may be approved for a satellite dispensing 3 location, and may relocate to another location in the same region 4 unless the CRC determines relocation would be contrary to the 5 purposes of the medical cannabis laws. Clinical registrants are 6 required to report the results of the clinical research to the CRC 7 upon completion of the study or following publication of the study 8 in a peer-reviewed medical journal. 9 An entity issued a medical cannabis cultivator, manufacturer, or 10 dispensary permit may not concurrently hold a clinical registrant 11 permit, and an entity issued a clinical registrant permit may not 12 concurrently hold any medical cannabis cultivator, manufacturer, or 13 dispensary permit. 14 The bill provides that no entity holding a permit issued by the 15 CRC may obtain another permit type, expand operations authorized 16 under an existing permit, or engage in new activities or establish a 17 new business involving cannabis without the express approval of 18 the CRC and the municipality in which the permit holder’s facility 19 is located. 20 The bill revises the criminal history record background check 21 requirements for medical cannabis cultivator, manufacturer, 22 dispensary, and clinical registrant applicants to provide that a 23 conviction for a crime of the first, second, or third degree, as well 24 as any drug offense other than minor cannabis possession, 25 constitutes a disqualifying conviction that may bar the applicant 26 from holding an interest in or being employed by a medical 27 cannabis cultivator, manufacturer, dispensary, or clinical registrant. 28 Current law limits disqualifying convictions to drug offenses other 29 than minor cannabis possession. The CRC will retain the discretion 30 to issue a permit to an applicant if it finds evidence of 31 rehabilitation. 32 The bill further provides that no criminal history record 33 background check will be required for an applicant who holds less 34 than a five percent investment interest in the medical cannabis 35 cultivator, manufacturer, dispensary, or clinical registrant, or who is 36 a member of a group that holds less than a 20 percent investment 37 interest where no member of the group holds more than a five 38 percent interest in the total group investment, and the applicant does 39 not have the authority to make operational decisions for the 40 permitted entity. Individuals and groups that are exempt from the 41 criminal history record background check requirement will not be 42 required to complete any application information. If the applicant 43 or group gains an investment interest above these thresholds or the 44 applicant gains the authority to make operational decisions, the 45 individual or group will be required to notify the CRC, provide all 46 information as may be required by the CRC, and undergo a criminal 47 history record background check within 30 days, or the permit will 48 be revoked and the individual or group will be prohibited from

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1 holding any investment interest in a medical cannabis cultivator, 2 manufacturer, dispensary, or clinical registrant for a period of two 3 years. 4 The bill prohibits an employee of any department, division, 5 agency, board, or other governmental entity involved in the process 6 of reviewing, processing, or making determinations with regard to a 7 medical cannabis permit from having any financial interest in 8 medical cannabis or receiving anything of value from a permit 9 applicant in exchange for reviewing, processing, or making 10 recommendations with regard to a permit application. 11 Applications for medical cannabis cultivator, manufacturer, and 12 dispensary permits and for clinical registrant permits will be exempt 13 from the “Open Public Records Act,” P.L.1963, c.73 (C.47:1A-1 et 14 seq.) and P.L.2001, c.404 (C.47:1A-5 et al.). 15 16 ATC Operational Requirements 17 18 The bill requires medical cannabis cultivators, manufacturers, 19 and clinical registrants to establish and maintain standardized price 20 lists, which will reflect the price of all medical cannabis sold by a 21 cultivator or clinical registrant, and all medical cannabis products 22 sold by a manufacturer or clinical registrant, to other permitted 23 entities. Price lists are to be posted on the entity’s Internet website, 24 if any, maintained on file with the CRC, and may be updated once 25 per month. An entity that sells medical cannabis or medical 26 cannabis products at a price that deviates from its price list will be 27 liable to a civil penalty of $1,000 per sale, and an entity that fails to 28 maintain its current price list on file with the CRC will be liable to a 29 civil penalty of $10,000 for each week during which the CRC does 30 not have the current price list. The prices charged by a medical 31 cannabis dispensary to other dispensaries, and the prices charged by 32 a medical cannabis dispensary or clinical registrant to patients and 33 their caregivers, are to be reasonable and consistent with the costs 34 of acquiring and dispensing, selling, or transferring the medical 35 cannabis or medical cannabis product. 36 The bill requires all medical cannabis and medical cannabis 37 products packaged for dispensing to patients to include a label that 38 includes information concerning the strain, potency, cultivation 39 method, ingredients, expiration date, allergen warnings, and related 40 information. The label is to be affixed by the entity that packages 41 the medical cannabis or medical cannabis product for dispensing, 42 and prior entities in the cultivation and manufacturing process are to 43 forward to that entity the information needed to complete the label. 44 The bill requires the CRC to develop and maintain a 45 comprehensive tracking system for medical cannabis that covers 46 cultivation through final dispensing. The tracking system is to be 47 designed to prevent diversion and tampering while promoting

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1 accurate accounting and recording of all information relevant to the 2 medical cannabis or medical cannabis product. 3 The bill expressly authorizes medical cannabis dispensaries to 4 deliver medical cannabis to a patient or to the patient’s caregiver. 5 The CRC is to establish requirements for delivery, including 6 various requirements concerning recordkeeping, staffing of delivery 7 vehicles, equipment, operational protocols, and minimum insurance 8 coverage. 9 The owners, directors, officers, and employees at each medical 10 cannabis cultivator, manufacturer, dispensary, and clinical 11 registrant will be required to undergo eight hours of ongoing 12 training each calendar year. The training is to be tailored to the 13 roles and responsibilities of the individual’s job function and 14 include training on confidentiality and any other topics required by 15 the CRC. For medical cannabis dispensary and clinical registrant 16 employees, the ongoing training may include completing the 17 curriculum developed by the CRC concerning patient consultations. 18 The bill requires the CRC to establish, by regulation, thresholds 19 for administrative action to be taken against permit holders, 20 including specific penalties and disciplinary actions that may be 21 imposed in a summary proceeding. 22 The bill provides that no medical cannabis cultivator, processor, 23 or dispensary permit may be sold or transferred, except that the first 24 six ATC permits issued after P.L.2009, c.307 (C.24:6I-1 et al.) took 25 effect may sell or transfer that permit to a for profit entity, provided 26 that: the owners, officers, directors, employees, and applicable 27 investors complete a criminal history record background check; the 28 CRC approves the sale or transfer; and the sale or transfer takes 29 place within one year after the effective date of the bill. The sale or 30 transfer will not be subject to the requirements of the “New Jersey 31 Nonprofit Corporation Act,” N.J.S.15A:1-1 et seq., provided that, 32 prior to or at the time of the sale or transfer, all debts and 33 obligations of the nonprofit entity are either paid in full or assumed 34 by the for-profit entity purchasing or acquiring the permit, or a 35 reserve fund is established for the purpose of paying in full the 36 debts and obligations of the nonprofit entity, and the for-profit 37 entity pays the full value of all assets held by the nonprofit entity, 38 as reflected on the nonprofit entity’s balance sheet, in addition to 39 the agreed-upon price for the sale or transfer of the entity’s 40 alternative treatment center permit. 41 The bill provides that medical cannabis cultivators, 42 manufacturers, dispensaries, and clinical registrants will be 43 permitted to establish a medical advisory board to advise the 44 permitted entity on all aspects of its business. A medical advisory 45 board is to comprise five members: three healthcare practitioners; 46 one qualifying patient who resides in the same area as the permitted 47 entity; and one business owner from the same area as the permitted 48 entity. No owner, director, officer, or employee of a permitted

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1 entity may serve on a medical advisory board. Medical advisory 2 boards are to meet at least two times per year. 3 Medical cannabis dispensaries and clinical registrants are to 4 consider whether to make interpreter services available to the 5 population served, including for individuals with a vision or hearing 6 impairment. The CRC is to assist facilities in locating appropriate 7 interpreter resources. Dispensaries and clinical registrants will be 8 responsible for the cost of providing interpreter services. 9 Medical cannabis cultivators, manufacturers, dispensaries, and 10 clinical registrants operating on a for-profit basis may not operate at 11 any premises that was the subject of a business development 12 incentive. Medical cannabis cultivators and clinical registrants may 13 not be located on land valued, assessed, or taxed as an agricultural 14 or horticultural use pursuant to the “Farmland Assessment Act of 15 1964,” P.L.1964, c.48 (C.54:4-23.1 et seq.). 16 17 Other Cannabis-Related Licensure 18 19 The bill requires each batch of medical cannabis and each batch 20 of a medical cannabis product to be tested by a laboratory to 21 determine its chemical composition and potency and to screen for 22 contamination by microbial contaminants, foreign material, residual 23 pesticides, other agricultural residue and residual solvents, and 24 heavy metals. The laboratory is to produce a written report 25 detailing the results of the testing, a summary of which is to be 26 included in any packaging materials for the medical cannabis or 27 cannabis product. Laboratories may charge a reasonable fee for 28 performing the test. The testing requirement will take effect once 29 the CRC certifies that there are a sufficient number of testing 30 laboratories licensed to ensure that the testing and labeling 31 requirements can be satisfied without disrupting timely patient 32 access to medical cannabis. 33 Laboratories providing testing services will be required to 34 register with the CRC and will be subject to inspection to ensure 35 that the equipment used is in good condition and properly 36 calibrated. The owners, directors, officers, and employees of a 37 testing laboratory will be required to undergo a criminal history 38 record background check as a condition of licensure; no applicant 39 with a disqualifying conviction will be authorized to own, operate, 40 or be employed by a medical cannabis testing laboratory. 41 “Disqualifying conviction” means any drug offense other than 42 minor cannabis possession; applicants with a disqualifying 43 conviction may still be approved if the applicant demonstrates clear 44 and convincing evidence of rehabilitation. As a condition of 45 licensure, each laboratory will be required to certify its intention to 46 seek third party accreditation in accordance with ISO 17025 to 47 ensure equipment is routinely inspected, calibrated, or maintained,

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1 until such time as the CRC issues its own standards or confirms the 2 use of ISO 17025. 3 The CRC will be required to establish testing standards; 4 however, until such time as the standards are adopted, testing 5 laboratories will be authorized to utilize testing standards from 6 another state with a medical cannabis program, which state is to be 7 designated by the Executive Director of the CRC. 8 The CRC is required to conduct a feasibility study concerning 9 the establishment of a new research and development permit that 10 would be dedicated to advancing the medical uses of cannabis. The 11 study is to examine potential funding sources and include a public 12 hearing, and the CRC is to conduct the study every three years until 13 such time as a research and development permit is established in the 14 State. The CRC will be authorized to establish additional permit 15 types as may be appropriate, including permits authorizing 16 pharmacies to be issued medical cannabis dispensary permits. 17 In addition, any individual who performs work for or on behalf 18 of any ATC will be required to hold a valid certification issued by 19 the CRC in order to participate in: obtaining, possessing, 20 cultivating, processing, manufacturing, creating, transporting, 21 transferring, relocating, dispensing or delivering medical cannabis. 22 The CRC will establish the qualification requirements for 23 certification and the certification process, which may include 24 requiring an applicant to complete a training course as a condition 25 of initial certification. 26 27 Legal Protections for Patients and Caregivers 28 29 The bill provides that qualifying patients and designated 30 caregivers may not be discriminated against when enrolling in 31 schools and institutions of higher education, when renting or leasing 32 real property, or in the issuance of professional licensing, 33 certifications, or permits issued by the State, solely on the basis of 34 the individual’s status as a registry cardholder or engaging in 35 authorized conduct in relation to medical cannabis. However, 36 schools, institutions of higher education, landlords, and licensing 37 authorities will not be required to take any action that would 38 jeopardize a monetary grant or privilege of licensure based on 39 federal law. Schools, institutions, and landlords may not be 40 penalized or denied benefits under State law solely on the basis of 41 enrolling or renting or leasing real property to a registered patient. 42 A person’s status as a patient or caregiver, or as an owner, officer, 43 director, or employee of a medical cannabis cultivator, 44 manufacturer, dispensary, or clinical registrant will not constitute 45 the sole grounds for entering an order restricting or denying custody 46 of, or visitation with, a minor child of the person. 47 The bill provides that medical cannabis is to be treated the same 48 as any other medication for the purposes of furnishing medical care,

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1 including determining the individual’s eligibility for an organ 2 transplant. 3 The bill prohibits employers from taking any adverse 4 employment action against an employee based on the employee’s 5 status as a registry identification cardholder. If an employer has a 6 drug testing policy and an employee or job applicant tests positive 7 for cannabis, the employee or job applicant is to be offered an 8 opportunity to present a legitimate medical explanation for the 9 positive test result or request a retest. Nothing in the bill will 10 restrict an employer’s ability to prohibit or take adverse 11 employment action for the possession or use of intoxicating 12 substances during work hours or on workplace premises outside of 13 work hours, or require an employer to commit any act that would 14 violate federal law or result in the loss of a federal contract or 15 federal funding. Employers will not be penalized or denied any 16 benefit under State law for employing a person who is a registry 17 cardholder. 18 The bill provides that health care facilities are prohibited from 19 taking adverse employment action or ending a professional 20 affiliation with a health care practitioner solely based on the 21 practitioner authorizing patients for the medical use of medical 22 cannabis or otherwise engaging in authorized conduct in relation to 23 medical cannabis. Health care facilities may not be penalized or 24 denied benefits under State law for employing or maintaining a 25 professional affiliation with a practitioner who engages in 26 authorized conduct in relation to medical cannabis. 27 Health care facilities may not be penalized or denied any benefit 28 under State law solely for permitting or prohibiting the handling, 29 administration, usage, or storage of medical cannabis, provided that 30 the facility’s policies related to medical cannabis are consistent with 31 all other facility policy on medication handling, administration, 32 usage, or storage. Health care facilities will also not be penalized 33 or denied any benefit under State law solely for prohibiting the 34 smoking of medical cannabis on facility property in accordance 35 with the facility’s smoke free policy. 36 Insurance carriers will be prohibited from denying health care 37 practitioners medical malpractice coverage or charging increased 38 premiums, deductibles, or other fees based on the practitioner 39 engaging in authorized conduct in relation to medical cannabis. 40 The bill provides that the chief administrator of a facility that 41 provides behavioral health services is to develop a policy allowing 42 designated caregivers, parents, and guardians access to registered 43 qualifying patients who are receiving services at the facility, for the 44 purpose of assisting the patient with the administration of medical 45 cannabis. Nothing in the bill will authorize medical cannabis to be 46 smoked in any area of the facility where smoking is otherwise 47 prohibited by law.

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1 The bill provides that State law enforcement officials are not 2 required to comply with or enforce federal criminal laws related to 3 cannabis. The bill further provides federal criminal laws will not 4 serve as a basis to invalidate a contract involving an ATC. 5 The bill provides that hotels and multifamily dwelling units are 6 authorized to restrict the consumption of medical cannabis on their 7 premises; provided that multifamily dwelling units may only restrict 8 consumption of medical cannabis by smoking. 9 The bill updates the annual reporting requirements for the CRC 10 to reflect new data that will be generated pursuant to the bill, 11 including information concerning diversity in the permits awarded 12 in by the CRC and information on disparities in drug arrests. 13 Nothing in the bill is to be construed to restrict or otherwise 14 affect the sale, prescribing, and dispensing of prescription drugs and 15 devices approved by the federal Food and Drug Administration. 16 The bill adds a severability clause and provides that the CRC 17 may waive any requirements of the State medical cannabis laws if 18 waiver is necessary to achieve the purposes of the law and provide 19 access to patients who would not otherwise qualify for medical 20 cannabis to alleviate suffering from a debilitating medical 21 condition, and if granting the waiver does not create a danger to the 22 public health, safety, or welfare.