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.

The Coalition for Medical Marijuana of New Jersey (CMMNJ) announced it opposes the bill. Underground legacy operators often provide quality, affordable medicine.

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.

“There needs to be further clarification around that at some point. Because I can’t believe and doubt that’s the sentiment of the Senate President to say they’re minority owned or women-owned business or a disabled owned business and not be minority owned or woman-owned or disabled own business,” Singleton said. “Probably need additional word smithing.”

“It would allow a business to exist and the minority owner to be compensated,” NJ Canna Business Association (NJCBA) acting President Bill Caruso argued.

He said they were opposed to the bill overall.

Singleton later said he would be talking to Scutari to make sure White male-owned businesses can’t pretend they’re minority or woman-owned or disabled veteran-owned after that person is forced out one way or another.

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.

“Getting rid of the Commission would have been a bad idea. This bill seeks to improve the Commission,” he added. “It is a noble intent…”

“Had the Republican nominee for Governor won the election last November, we probably wouldn’t have cared that the legislature was taking away the opportunity of the Governor-elect to appoint a Chair of this Commission,” Caruso noted.

“I have not heard the current Governor-elect opine on this matter. So I don’t see a lot of controversy in this,” he explained.

It remains to be seen how close the Governor-elect will be with Scutari and allow him to dictate cannabis policy or other policies.

For example, it became apparent on Monday that Scutari and other State Senators hate the anti-machine progressives Matt Platkin and Kevin Walsh appointed as NJ Attorney General and Comptroller, and want to curb their power to keep some shady bigwigs semi-honest.

Workers High on the Job Concerns

The bill also states that the NJ Dept of Labor needs to create workforce impairment standards. The CRC hasn’t gotten around to developing any.

It’s a difficult issue. Someone who is high and messes up arguably makes the federal cannabis legalization movement look bad. It’s also easier to do some jobs a little high than others.

Sarlo said that, as a hustler with road and utility contracts fulfilled by workers on his payroll, he didn’t want them to be possibly high.

Caruso said the NJ-CRC isn’t naturally equipped to handle such a concern.

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.

It is scheduled for a hearing on Monday, December 8th, at 1 PM in the NJ Senate Budget and Appropriations Committee.

It’s unclear if it will pass the Assembly and be signed into law. It doesn’t have a companion bill yet.

But that can change quickly.

The legislature is currently in its lame duck session. It’s between now and when the new legislative session begins, with most of the same legislators and the new Governor taking office in January.

Cannabis Worker Labor Rights Protected

The NJ Senate Judiciary Committee also passed a bill, S 3139, on labor issues. It was passed by the Assembly earlier in the year to protect workers’ right to organize.

The UFCW labor union has been strongly in favor of this. They have been fighting against the large corporate Multi-State Operator (MSO) Curaleaf, trying to disrespect workers. So Curaleaf is trying to question the legitimacy of the CRC in a lawsuit.