New Jersey § 24:6i-35

§ 24:6i-35.

Regulation of Cannabis. a. The commission shall adopt rules and regulations, pursuant to subsection d. of

section 6 of P.L.2021, c. 16 ( C.24:6I-34 ), which shall be consistent with the intent of P.L.2021, c. 16 ( C.24:6I-31 et al.). The commission may create an expert task force to make recommendations to the commission

about the content of such regulations. Such regulations shall include: (1) Procedures for the application, issuance, denial, renewal, suspension, and revocation

of a license or conditional license to operate as a cannabis establishment, distributor,

or delivery service. Such procedures shall include a periodic evaluation of whether the number of each

class of cannabis establishment, or cannabis distributors or cannabis delivery services,

is sufficient to meet the market demands of the State, a result of which is the commission's

authority to accept new applications and issue additional licenses as it deems necessary

to meet those demands, except as otherwise provided in section 33 of P.L.2021, c. 16 ( C.24:6I-46 ) regarding an initial period during which the number of Class 1 Cannabis Cultivator

licenses is capped, which limit shall not apply to cannabis cultivator licenses issued

to microbusinesses as set forth in that section; (2) Application, licensure, and renewal of licensure fees; (3) Incorporation of the licensing goals for applicants for licensure who are New

Jersey residents established in P.L.2021, c. 16 ( C.24:6I-31 et al.). The commission shall make good faith efforts to meet these goals. Qualifications for licensure shall be directly and demonstrably related to the operation

of a cannabis establishment, distributor, or delivery service, provided that the commission

shall make licenses available to as diverse a group as reasonably practicable, however

no license of any kind shall be issued to a person under the legal age to purchase

cannabis items; (4)(a) Incorporation of the licensing measures established by the Office of Minority,

Disabled Veterans, and Women Cannabis Business Development pursuant to subparagraph

(b) of paragraph (1) of subsection c. of section 32 of P.L.2019, c. 153 ( C.24:6I-25 ) to promote the licensing of persons from socially and economically disadvantaged

communities, and minority businesses and women's businesses, as these terms are defined

in section 2 of P.L.1986, c. 195 ( C.52:27H-21.18 ), and disabled veterans' businesses as defined in section 2 of P.L.2015, c. 116 ( C.52:32-31.2 ). The commission shall coordinate with the office with respect to the incorporation

of these licensing measures; (b) Procedures, to monitor the incorporated licensing measures established by the

Office of Minority, Disabled Veterans, and Women Cannabis Business Development, which

shall include a verification, as part of the application process for licensure or

license renewal, of a minority, women's, or disabled veterans' business certification

provided to that business by the office pursuant to paragraph (1) of subsection b.

of section 32 of P.L.2019, c. 153 ( C.24:6I-25 ), or verification of an application for certification under review by the office

pursuant to that paragraph, which review is occurring simultaneous to the application

for licensure or license renewal; (5) Security requirements for cannabis establishments and transportation of cannabis

and cannabis items; (6) Requirements to prevent the sale or diversion of cannabis items to persons under

the legal age to purchase cannabis items, including, but not limited to, requirements

that: (a) All licensees and licensee representatives, before permitting entrance to a cannabis

establishment and selling or serving cannabis items to any person, shall require such

person to produce one of the following pieces of identification: (i) The person's United States passport, or other country's passport or proper government-issued

documentation for international travel if a citizen or other lawfully recognized resident

of that country, who is lawfully permitted to possess and use that country's passport

or government-issued documentation for purposes of identification in the United States; (ii) The person's motor vehicle driver's license, whether issued by New Jersey or

by any other state, territory, or possession of the United States, or the District

of Columbia, provided the license displays a picture of the person; (iii) A New Jersey identification card issued by the New Jersey Motor Vehicle Commission;

or (iv) Any other identification card issued by a state, territory, or possession of

the United States, the District of Columbia, or the United States that bears a picture

of the person, the name of the person, the person's date of birth, and a physical

description of the person; (b) No cannabis establishment, distributor, or delivery service shall employ persons

under 18 years of age nor shall any cannabis retailer allow persons under the legal

age to purchase cannabis items, other than a person employed by the retailer, to enter

or remain on the premises of a cannabis retailer unless accompanied by a parent or

legal guardian; (c) Packaging and branding regulations to prevent the marketing of cannabis items

and cannabis paraphernalia to people under the legal age to purchase cannabis items; (d) No edible cannabis products shall be manufactured, marketed, or sold that are

in the shape of, or a shape bearing the likeness or containing characteristics of,

a realistic or fictional human, animal, or fruit, or part thereof, including artistic,

caricature, or cartoon renderings; (7) Labeling and packaging requirements for cannabis items sold or distributed by

a cannabis establishment, including, but not limited to, the affixing of a tracking

stamp to containers or packaging as set forth in section 29 of P.L.2019, c. 153 ( C.24:6I-22 ) and requirements that: (a) Cannabis items and cannabis paraphernalia are not packaged, branded, or marketed

using any statement, illustration, or image that: (i) Includes false, deceptive, or misleading statements; (ii) Promotes over-consumption; (iii) Depicts a child or other person under legal age consuming cannabis items; or (iv) Includes objects, such as toys, characters, or cartoon characters suggesting

the presence of a person under the legal age to purchase cannabis items, or any other

depiction designed in any manner to be especially appealing to persons under the legal

age to purchase cannabis items; (b) Ensure cannabis items are packaged in opaque, child-resistant special packaging,

or if applicable to a particular cannabis item, child resistant special packaging

for liquid nicotine containers, in accordance with the “Poison Prevention Packaging

Act of 1970,” 15 U.S.C. s.1471 et seq., and the associated regulations promulgated thereunder, except that these child-resistant

packaging requirements shall not apply to any cannabis item obtained from a cannabis

retailer or alternative treatment center for immediate, on-premises consumption at

that retailer's or center's cannabis consumption area as permitted pursuant to section

28 of P.L.2019, c. 153 ( C.24:6I-21 ); (c) Cannabis items warning labels adequately inform consumers about safe cannabis

use and warn of the consequences of misuse or overuse; (d) Labeling rules that mandate clear identification of health and safety information,

including, but not limited to: (i) Net weight; (ii) Production date and expiration date; (iii) For a cannabis product, cannabis extract, or other cannabis resin, an ingredient

list that includes, but is not limited to, all ingredients used to manufacture the

cannabis product, any other inactive or excipient ingredients besides cannabis, and

a list of all potential allergens contained within the product; (iv) Strain or type of cannabis, listed by scientific terms, if available, and generic

or “slang” names; (v) Whether the product requires refrigeration; (vi) Growth method, whether dirt grown, hydroponic, or otherwise, and an indication

whether the cannabis was grown using all-organic materials, and a complete list of

any nonorganic pesticides, fungicides and herbicides used during the cultivation of

the cannabis; (vii) For a cannabis product, serving size, the total number of servings, and a statement

regarding the percentage of THC contained in the cannabis product and in each serving. For example: “The serving size of active THC in this product is X mg. This product contains X servings of cannabis, and the total amount of active THC

in this product is X mg.”; (viii) Warning labels that include the nationwide toll-free telephone number used

to access poison control centers that is maintained in accordance with 42 U.S.C. s.300d-71 , as well as include, but are not limited to, one or more of the following statements,

if applicable to a particular cannabis item: --“This product contains cannabis”; --“This product is infused with cannabis”; --“This product is intended for use by adults 21 years of age or older. Keep out of the reach of children”; --“The intoxicating effects of this product may be delayed by two or more hours”; --“There may be health risks associated with the consumption of this product, including

for women who are pregnant, breastfeeding, or planning on becoming pregnant”; --“Do not drive a motor vehicle or operate heavy machinery while using this product”; (e) Labeling rules that mandate the source of a cannabis item, including, but not

limited to, the license number of the cannabis cultivator where the usable cannabis

used for the cannabis item was grown, the license number of the cannabis manufacturer

that manufactured the cannabis item, and the license number of the cannabis retailer

that sold the cannabis item and the production batch and lot number of the cannabis

item; (8) Health and safety regulations and standards for the cultivation of cannabis, and

the manufacture and sale of cannabis items, including, but not limited to, requirements

that: (a) Establish accreditation and licensure criteria for cannabis testing facilities,

which shall include, as a condition for licensure, the maintenance of a labor peace

agreement and entrance into, or good faith effort to enter into, a collective bargaining

agreement in accordance with subsection c. of section 19 of P.L.2021, c. 16 ( C.24:6I-36 ). The commission shall also incorporate the licensing measures established by the

Office of Minority, Disabled Veterans, and Women Cannabis Business Development, and

the assessment of their effectiveness, pursuant to subparagraph (b) of paragraph (1)

of subsection c. of section 32 of P.L.2019, c. 153 ( C.24:6I-25 ), and apply them to the licensing of cannabis testing facilities in order to promote

the licensing of persons from socially and economically disadvantaged communities,

and minority businesses and women's businesses, as these terms are defined in section

2 of P.L.1986, c. 195 ( C.52:27H-21.18 ), and disabled veterans' businesses as defined in section 2 of P.L.2015, c. 116 ( C.52:32-31.2 ). The license shall permit a cannabis testing facility to test cannabis items in accordance

with the provisions set forth in P.L.2021, c. 16 ( C.24:6I-31 et al.), as well as test medical cannabis and medical cannabis products in accordance

with the provisions of the “Jake Honig Compassionate Use Medical Cannabis Act,” P.L.2009, c. 307 ( C.24:6I-1 et al.); (b) The commission issue licenses for a sufficient number of cannabis testing facilities,

if those facilities: (i) Meet the requirements for licensure, in order to ensure that the testing of representative

samples of cannabis items in accordance with the procedures set forth in paragraph

(13) of this subsection can be completed in not more than 14 days following their

submission to any facility. Other factors that may be considered by the commission in determining whether a

sufficient number of cannabis testing facilities are currently licensed include the

current licensees' experience or expertise in testing highly regulated products, demonstrated

testing efficiency and effectiveness, existing research partnerships or capability

to form and maintain research partnerships focusing on cannabis or cannabis items,

and any other factors established in regulation by the commission; and (ii) Permit the commission to inspect any licensed cannabis testing facility to determine

the condition and calibration of any equipment used for testing, and to ensure that

a facility's testing procedures are performed in accordance with the commission's

accreditation requirements for licensure; (c) Every licensed cannabis cultivator and cannabis manufacturer shall permit representatives

of cannabis testing facilities to make scheduled and unscheduled visits to their premises

in order to obtain random samples of cannabis items, in a quantity established by

the commission, to be transported to cannabis testing facilities for inspection and

testing to certify compliance with health, safety, and potency standards adopted by

the commission; (d) Prescribe methods of producing cannabis, and manufacturing and packaging cannabis

items; conditions of sanitation; safe handling requirements; approved pesticides

and pesticide testing requirements, to the extent not inconsistent with approved pesticides

and requirements otherwise established under federal and State law; and standards

of ingredients, quality, and identity of cannabis items manufactured, packaged, or

sold by cannabis establishments; (e) Establish accreditation criteria for responsible cannabis server and seller training

and certification programs for cannabis retailer employees; (f) Provide that no licensed cannabis establishment, distributor, or delivery service,

or employee of a cannabis establishment, distributor, or delivery service, shall consume,

or allow to be consumed, any cannabis items on the establishment's, distributor's,

or delivery service's premises, except as permitted in a cannabis consumption area

or premises' private area for employees as set forth in section 28 of P.L.2019, c. 153 ( C.24:6I-21 ); (g)(i) Set appropriate dosage, potency, and serving size limits for cannabis items,

provided that a standardized serving of a cannabis product shall be no more than 10

milligrams of active THC and no individual edible cannabis product for sale shall

contain more than 100 milligrams of active THC; (ii) Require that each single standardized serving of a cannabis product in a multiple-serving

edible product is physically demarked in a way that enables a reasonable person to

determine how much of the product constitutes a single serving of active THC, and

that each standardized serving of the cannabis product shall be easily separable to

allow an average person 21 years of age or older to physically separate, with minimal

effort, individual servings of the product; (iii) Require that, if it is impracticable to clearly demark every standardized serving

of cannabis product or to make each standardized serving easily separable in an edible

cannabis product, the product shall contain no more than 10 milligrams of active THC

per unit of sale; (h) Establish a universal symbol to indicate that a cannabis item contains cannabis,

which shall be marked, stamped, or imprinted directly on an edible retail cannabis

product, or on each single standardized serving in a multiple-serving edible cannabis

product, unless the item is a loose bulk good such as granola or cereal, a powder,

a liquid-infused item, or another form too impractical to be marked, stamped, or imprinted; (i) Prohibit the use of a commercially manufactured or trademarked food product as

an edible retail cannabis product, provided that a commercially manufactured or trademarked

food product may be used as a component of an edible retail cannabis product or part

of a product's recipe so long as the commercially manufactured or trademarked food

product is used in a way that renders it unrecognizable in the final edible cannabis

product and the product is not advertised as containing the commercially manufactured

or trademarked food product; (j) Establish screening, hiring, training, and supervising requirements for cannabis

retailer employees and others who manufacture or handle cannabis items; (k) Promote general sanitary requirements for the handling, storage, and disposal

of cannabis items, and the maintenance of cannabis establishments, and cannabis distribution

and cannabis delivery service premises; (l) Provide for rigorous auditing, inspection, and monitoring of cannabis establishments,

distributors, and delivery services for compliance with health and safety rules and

regulations; (m) Require the implementation of security requirements for cannabis retailers and

premises where cannabis items are manufactured, and safety protocols for cannabis

establishments, distributors, and delivery services, and their employees; (n) Prescribe reasonable restrictions on the manner, methods, and means by which cannabis

cultivators and cannabis distributors shall transport cannabis within the State, and

all licensees shall transport cannabis items within the State; and (o) Establish procedures for identification, seizure, confiscation, destruction, or

donation to law enforcement for training purposes of cannabis or cannabis items produced,

manufactured, sold, or offered for sale within this State which do not conform in

all respects to the standards prescribed by P.L.2021, c. 16 ( C.24:6I-31 et al.); (9) Restrictions on the advertising and display of cannabis items and cannabis paraphernalia,

including, but not limited to, requirements that: (a) Restrict advertising of cannabis items and cannabis paraphernalia in ways that

target or are designed to appeal to individuals under the legal age to purchase cannabis

items, including, but not limited to depictions of a person under 21 years of age

consuming cannabis items, or, includes objects, such as toys, characters, or cartoon

characters suggesting the presence of a person under 21 years of age, or any other

depiction designed in any manner to be especially appealing to a person under 21 years

of age; (b) Prohibit advertising of any cannabis items or cannabis paraphernalia on television,

or on radio between the hours of 6:00 a.m. and 10:00 p.m.; (c) Prohibit engaging in advertising unless the advertiser has reliable evidence that

at least 71.6 percent of the audience for the advertisement is reasonably expected

to be 21 years of age or older; (d) Prohibit engaging in advertising or marketing directed towards location-based

devices, including but not limited to cellular phones, unless the marketing is a mobile

device application installed on the device by the owner of the device who is 21 years

of age or older and includes a permanent and easy opt-out feature and warnings that

the use of cannabis items is restricted to persons 21 years of age or older; (e) Prohibit the sponsoring of a charitable, sports, musical, artistic, cultural,

social, or other similar event or advertising at or in connection with such an event

unless the sponsor or advertiser has reliable evidence that no more than 20 percent

of the audience at the event is reasonably expected to be under the legal age to purchase

cannabis items; (f) Require all advertisements to contain the following warning: “This product contains

cannabis. For use only by adults 21 years of age or older. Keep out of the reach of children.”; (g) Prohibit the advertising of cannabis items or cannabis paraphernalia in any form

or through any medium whatsoever within 200 feet of any elementary or secondary school

grounds. This subparagraph shall not apply to advertisements within the premises of a cannabis

retailer. For the purposes of this section, a noncommercial message shall not be considered

an advertisement. (10) A requirement that only cannabis items and cannabis paraphernalia are available

for sale at a cannabis establishment; (11) Procedures for the commission to conduct announced and unannounced visits to

cannabis establishments, distributors, and delivery services, to make, or cause to

be made, such investigations as it shall deem proper in the administration of P.L.2021, c. 16 ( C.24:6I-31 et al.) and any other laws which may hereafter be enacted concerning cannabis, or

the production, manufacture, distribution, sale, or delivery thereof, including the

inspection and search of any premises for which the license is sought or has been

issued, of any building containing the same, of licensed buildings, examination of

the books, records, accounts, documents and papers of the licensees or on the licensed

premises; (a) The commission shall be authorized and may at any time make an examination of

the premises of any person or entity licensed under P.L.2021, c. 16 ( C.24:6I-31 et al.) for the purpose of determining compliance with P.L.2021, c. 16 ( C.24:6I-31 et al.) and the rules of the commission; (b) The commission may require licensee compliance with P.L.2021, c. 16 ( C.24:6I-31 et al.), and may appoint auditors, investigators and other employees that the commission

considers necessary to enforce its powers and perform its duties; (c) During any inspection of a licensed premises, the commission may require proof

that a person performing work at the premises is 18 years of age or older. If the person does not provide the commission with acceptable proof of age upon

request, the commission may require the person to immediately cease any activity and

leave the premises until the commission receives acceptable proof of age; and (d) The commission shall not be required to obtain a search warrant to conduct an

investigation or search of licensed premises; (12) Record keeping requirements, including, but not limited to, the following: (a) The obligation of every cannabis cultivator to keep a complete and accurate record

of all sales of cannabis flowers, cannabis leaves, and immature cannabis plants, and

a complete and accurate record of the number of cannabis flowers produced, the number

of ounces of cannabis leaves produced, the number of immature cannabis plants produced,

and the dates of production; the obligation of every cannabis establishment to keep

a complete and accurate record of all sales of cannabis items, and a complete and

accurate record of the number of ounces of usable cannabis sold; the obligation of

every cannabis distributor to keep a complete and accurate record of all cannabis

and cannabis items transported in bulk, and the sending and receiving cannabis establishments

involved in each transportation of the cannabis or cannabis items; and the obligation

of every cannabis delivery service to keep a complete and accurate record of all cannabis

item deliveries made to consumers based on orders fulfilled by of cannabis retailers; (b) Such records shall be kept and maintained for four years, however there shall

not be a requirement that the records be maintained on the premises of a licensee,

and the records shall be in such form and contain such other information as the commission

may require; and (c) The commission may, at any time, with adequate notice, examine the books and records

of any cannabis establishment, distributor, or delivery service, and may appoint auditors,

investigators, and other employees that the commission considers necessary to enforce

its powers and its duties; (13) Procedures for inspecting samples of cannabis items, including: (a) On a schedule determined by the commission, every licensed cannabis cultivator

and manufacturer shall submit representative samples of cannabis items produced or

manufactured by the licensee to an independent, third-party licensed testing facility

meeting the accreditation requirements established by the commission, or random samples

may be obtained by representatives of the facility making a scheduled or unscheduled

visit to the licensee's premises, for inspection and testing to certify compliance

with standards adopted by the commission. Any sample remaining after testing shall be destroyed by the facility or returned

to the licensee, unless that sample does not meet the applicable standards adopted

by the commission, in which case it may be retained for purposes of retesting upon

request of a licensee in accordance with subparagraph (c) of this paragraph; (b) Licensees shall submit the results of this cannabis item inspection and testing

to the commission on a form developed by the commission; and (c) If a sample inspected and tested under this section does not meet the applicable

standards adopted by the commission, the sample may, upon notice to the commission,

be retested at the request of a licensee in a manner prescribed by the commission,

and in addition to a retest, or as an alternative thereto, the licensee may also be

permitted an opportunity to remediate, upon notice to the commission, the batch or

lot from which the failed sample was taken, which batch or lot shall be subject to

a subsequent test of a new representative sample in a manner prescribed by the commission. Any request for a retest of a sample, and any retest and reporting of results, as

well as any batch or lot remediation process undertaken and subsequent testing of

that batch or lot, shall be completed within a time period established by the commission. The commission shall also provide a process by which samples, batches, and lots

that failed retesting or remediation, as applicable, shall be destroyed; (14) Establishing the number of cannabis retailers, and permissible business arrangements

with respect to other types of retailing businesses: (a)(i) Assuming there are sufficient qualified applicants for licensure, the commission

shall, subject to periodic evaluation as described in paragraph (1) of this subsection,

issue a sufficient number of Class 5 Retailer licenses to meet the market demands

of the State, giving regard to geographical and population distribution throughout

the State; and (ii) the provision of adequate access to licensed sources of cannabis items to discourage

purchases from the illegal market; and (b) A cannabis retailer's premises shall not be located in or upon any premises in

which operates a grocery store, delicatessen, indoor food market, or other store engaging

in retail sales of food, or in or upon any premises in which operates a store that

engages in licensed retail sales of alcoholic beverages, as defined by subsection

b. of R.S.33:1-1 ; and (15) Civil penalties for the failure to comply with regulations adopted pursuant to

this section. b. In order to ensure that individual privacy is protected, the commission shall not

require a consumer to provide a cannabis retailer with personal information other

than government-issued identification as set forth in subparagraph (a) of paragraph

(6) of subsection a. of this section in order to determine the consumer's identity

and age, and a cannabis retailer shall not collect and retain any personal information

about consumers other than information typically acquired in a financial transaction

conducted by the holder of a Class C retail license concerning alcoholic beverages

as set forth in R.S.33:1-12 . c. Once regulations are adopted by the commission pursuant to subsection a. of this

section, but prior to the commencement of the application process, the commission

shall conduct a series of information sessions in every county in New Jersey to educate

residents of New Jersey about the responsibilities, opportunities, requirements, obligations,

and processes for application for a license to operate a cannabis establishment, distributor,

or delivery service. The commission shall conduct an appropriate number of information sessions in each

county considering the population of each county, but no fewer than one information

session in each county. The commission shall publicize the day, time, location, and agenda of each information

session broadly through television, radio, Internet, print, and local agencies. d. The commission shall: (1) Examine available research, and may conduct or commission new research or convene

an expert task force, to investigate the influence of cannabis and marijuana on the

ability of a person to drive a vehicle, on methods for determining whether a person

is under the influence of cannabis or marijuana, and on the concentration of active

THC, as defined in section 3 of P.L.2021, c. 16 ( C.24:6I-33 ), in a person's blood, in each case taking into account all relevant factors; and (2) Report the results of the research to the Governor and, pursuant to section 2

of P.L.1991, c. 164 ( C.52:14-19.1 ), the Legislature and make recommendations regarding both administrative and legislative

action as the commission deems necessary.