NJ Senate Committee Passes Bill to Go After Underground Legacy Operators, Reform CRC Rules
The NJ Senate Judiciary Committee passed a bill that cracks down on the underground legacy market and changes the Cannabis Regulatory Commission (CRC) and some of its rules. It was a coprehensive piece of legislation introduced by NJ Senate President Nick Scutari (D-22-Union).
Going After Underground Legacy Operators
The bill S 4847 empowers the NJ State police to go after underground legacy operators.
So far, the local police have been taking the lead in making busts.
According to the bill summary, it “requires the New Jersey State Police (NJSP) to develop and implement an enforcement program to identify, investigate, and initiate enforcement actions against unlicensed businesses selling cannabis or cannabis items.”
“The NJSP or a local law enforcement agency is permitted to take steps to close such businesses, seize any cannabis sold by the unlicensed business, and refer the matter for criminal prosecution….,” it added.
“I am in favor of giving the police more enforcement to go after the unlicensed smoke shops,” Senator Paul Sarlo (D-36-Bergen)said.
The Committee didn’t see this part as controversial enough to discuss much.
Minority and Women Ownership Questions
The Committee debated the bill’s effect on minority, women, and disabled veteran-owned businesses that are sold by their owners.
“If you were a previous business and you were certified as minority owned, woman-owned owned or disabled veteran-owned, and you have no one that fits that criteria … the business certificate will say that?” NJ Senate Majority Whip and homegrow champion Troy Singleton (D-7-Burlington) asked.
“I don’t believe that’s the intent,” David J. Lorette of the Office of Legislative Services (OLS) said. “The business would have at least minority representation by an investor or investor group.”
It might mean a Hispanic investor could count toward overall Hispanic ownership of the company, for example. But that was unclear.
“If you no longer have those individuals there, does the designation still survive?” Singleton asked.
“It does seem that it could be unclear….,” Lorette said.
“It’s very clear that … it can only stay in place if you transfer it to another certified place,” Singleton noted. “We’re saying that’s no longer the case?”
It seems like well-abled civilian White male investors could pretend they have a minority, woman, or disabled veteran business after the previous majority owner has to exit.
The NJ-CRC and Governor-Elect Mikie Sherrill
Caruso explained they have presented recommendations from experts to Governor Phil Murphy (D), who is leaving in January due to term limits, and Governor-elect Mikie Sherill.
Improving the ability for legal cannabis workers to start working quicker has been a significant problem, for example, he noted.
Caruso also wanted the ability to expand advertising for cannabis companies.
While Heady NJ is a great way to advertise to devoted cannabis consumers, patients, professionals, and entrepreneurs who are mostly Millennials and Gen Xers across Jersey, many want to advertise to normies in venues that minors in younger generations could see, which the State doesn’t like.
It remains to be seen how close the Governor-elect will be with Scutari and allow him to dictate cannabis policy or other policies.
CRC Changes
The bill would also make it so that an elected official be able to be a CRC Commissioner with a couple of restrictions.
Scutari really wants his former Aide, Harris Laufer, who is a Councilman in Springfield in Union County. This previously seemed barred by law.
Lorette also said that committee amendments eliminated the two-year post-employment prohibition on employment for cannabis related businesses. That only relates to state officers and employees not responsible for cannabis policy with the State and their family members.
One could know a lot of people and closely follow something while working on something similar, and cash in.
It also says “it removes the limitations that commission members, the executive director, and employees are prohibited from meeting or discussing with any person any issues involving any pending or proposed application or any matter…”
The bill passed 7-1-3 with Republicans abstaining and opposing it.