[Third Reprint]

ASSEMBLY, No. 1708

STATE OF NEW JERSEY

219th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION

 


 

Sponsored by:

Assemblyman  JOHN J. BURZICHELLI

District 3 (Cumberland, Gloucester and Salem)

Assemblyman  HERB CONAWAY, JR.

District 7 (Burlington)

Assemblywoman  JOANN DOWNEY

District 11 (Monmouth)

 

 

 

 

SYNOPSIS

      Requires workers’ compensation, PIP, and health insurance coverage for the medical use of cannabis under certain circumstances.

 

CURRENT VERSION OF TEXT

     As amended by the General Assembly on June 21, 2021.

  


An Act concerning 1the1 medical 1[marijuana] use of cannabis1 and insurance coverage, amending P.L.2009, c.307, and supplementing various parts of the statutory law.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1[1.  Section 16 of P.L.2009, c.307 (C.24:6I-14) is amended to read as follows:

     16.     a.  Nothing in this act shall be construed to require a government medical assistance program or private health insurer to reimburse a person for costs associated with the medical use of marijuana, or an employer to accommodate the medical use of marijuana in any workplace.

     b.    Notwithstanding the provisions of subsection a. of this section, an employer or workers’ compensation insurance carrier or private passenger automobile insurance carrier shall provide coverage for costs associated with the medical use of marijuana pursuant to P.L.     , c.   (C.       ) (pending before the Legislature as this bill).

(cf: P.L.2009, c.307, s.16)]1

 

      11.  Section 16 of P.L.2009, c.307 (C.24:6I-14) is amended to read as follows:

     16.  a.  Nothing in P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.) shall be construed to require a government medical assistance program 3[or private health insurer]3 to reimburse a person for costs associated with the medical use of cannabis, or to restrict or otherwise affect the distribution, sale, prescribing, and dispensing of any product that has been approved for marketing as a prescription drug or device by the federal Food and Drug Administration.

     b.    Notwithstanding the provisions of subsection a. of this section, an employer or workers’ compensation insurance carrier 3[or] ,3 private passenger automobile insurance carrier 3, or health insurance carrier3 shall provide coverage for costs associated with the medical use of cannabis pursuant to P.L.     , c.   (C.       ) (pending before the Legislature as this bill) except that an employer or carrier shall not be required to provide coverage for costs associated with the medical use of cannabis upon intervention by the federal government to enforce the "Controlled Substances Act" (21 U.S.C. s.802 et seq.).1

(cf: P.L.2019, c.153, s.22)

     3[2.  (New section)  The Legislature finds and declares that scientific data indicate that medical 1[marijuana] cannabis1 has significant medical value when used in the treatment of certain injuries and diseases, including pain relief, control of nausea and vomiting, and appetite stimulation.  1[Marijuana] Cannabis1 also has potential therapeutic value from effects such as anxiety reduction, sedation, and euphoria.  Scientific studies have found that 1[marijuana] cannabis1 is effective in relieving some of the symptoms of HIV/AIDS, cancer, glaucoma, and multiple sclerosis.  Other studies have suggested that medical 1[marijuana] cannabis1 legalization may lead to decreased prescription opioid abuse.

     Although medical 1[marijuana] cannabis1 has many useful therapeutic benefits, its use is limited because its costs are not covered by insurance.  By requiring coverage for medical 1[marijuana] cannabis1 under workers’ compensation and private passenger automobile insurance, access to these benefits will be expanded.  Additionally, medical 1[marijuana] cannabis1 may lower costs for insurers by providing a more economical alternative to more expensive and risky drugs such as opioids.]3

 

     32.   (New section)  The Legislature finds and declares that:

     a.     Modern medical research has discovered a beneficial use for cannabis in treating or alleviating the pain or other symptoms associated with certain medical conditions, as found by the National Academy of Sciences' Institute of Medicine in March 1999.  In addition, a rigorous review by the National Academies of Sciences, Engineering, and Medicine in 2017 of more than 10,000 scientific abstracts published since 1999 concerning the health impacts of cannabis reveals that there is conclusive or substantial evidence that cannabis is effective in the treatment of chronic conditions such as glaucoma, chronic pain, multiple sclerosis, and chemotherapy-induced nausea and vomiting. 

     b.    As the opioid crisis continues across the country and in New Jersey, access to medical cannabis may help save lives by presenting a safe alternative to riskier opioids.

     c.     According to the U.S. Sentencing Commission and the Federal Bureau of Investigation, 99 out of every 100 cannabis arrests in the country are made under state law, rather than under federal law.  Consequently, changing state law will have the practical effect of protecting from arrest the vast majority of seriously ill people who have a medical need to use cannabis.

     d.    Cannabis is currently classified as a Schedule I controlled substance under the federal “Controlled Substances Act” (21 U.S.C. s.801 et seq.) and therefore the manufacture, distribution, and possession of cannabis is a criminal offense under federal law.

     e.     Although federal law currently prohibits the use of cannabis, the laws of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virginia, Washington, West Virginia, and the District of Columbia permit the use of cannabis for medical purposes.  New Jersey joins this effort for the health and welfare of its citizens.

     f.     States are not required to enforce federal law or prosecute people for engaging in activities prohibited by federal law; therefore, compliance with P.L.    c.    (C.        )(pending before the Legislature as this bill) does not put the State of New Jersey in violation of federal law.

     g.    In Hager v. M&K Construction 246 N.J. 1 (2021) the New Jersey Supreme Court recently contemplated the interaction of federal and State law as it relates to the regulation of cannabis.  In its holding, the court concluded that:

     (1)   Congress expressed its intent, in the language of section 903 of the “Controlled Substances Act,” (21 U.S.C. s.903) that the act preempts only a state law that requires the performance of an action specifically forbidden by federal statue;

     (2)   under the “Controlled Substances Act” it is unlawful to knowingly or intentionally possess with intent to manufacture, distribute, or dispense cannabis;

     (3)   an employer's reimbursement to a qualified patient for costs associated with the medical use of cannabis does not require the employer to commit those offenses and is therefore not preempted by federal law; and

     (4)   reimbursement by an employer to an employee for costs associated with the medical use of cannabis would not be aiding and abetting in the commission of a crime.

     h.    Compassion dictates that a distinction be made between medical and non-medical uses of cannabis.  Hence, the purpose of P.L.    c.    (C.        )(pending before the Legislature as this bill) is to protect from arrest, prosecution, property forfeiture, and criminal and other penalties, those patients who use cannabis to alleviate suffering from qualifying medical conditions, as well as their insurance carriers.3

 

     3.    (New section)  1a.1  Personal injury protection benefits provided pursuant to section 4 of P.L.1972, c.70 (C.39:6A-4) or section 4 of P.L.1998, c.21 (C.39:6A-3.1) shall include coverage for costs associated with the medical use of 1[marijuana] cannabis1 provided that 1[:

     a.     The] the1 insured is a qualifying patient authorized for the medical use of 1[marijuana] cannabis1 pursuant to P.L.2009, c.307 (C.24:6I-1 et al) 1[; and] .1

     b.    1[At least one other medication or treatment has been attempted and found to be unsuccessful in treating the patient’s debilitating medical condition.]

      A private passenger automobile insurer shall not be required to provide coverage for costs associated with the medical use of cannabis upon intervention by the federal government to enforce the "Controlled Substances Act" (21 U.S.C. s.802 et seq.).

     c.     Notwithstanding any provision of the insurance policy to the contrary, 3[if for any reason payment by the insurer to the medical cannabis dispensary is not feasible, the] an3 insurer shall remit directly to the insured the costs for any benefits associated with the medical use of cannabis upon proof of payment by the insured to the medical cannabis dispensary.1

 

     4.    (New section)  1a.1  Workers’ compensation benefits paid by any employer or a workers' compensation insurance carrier of an employer for an injury to an employee under R.S.34:15-1 et seq. shall include coverage for costs associated with the medical use of 1[marijuana] cannabis1 provided that 1[:

     a.     The] the1 employee is a qualifying patient authorized for the medical use of 1[marijuana] cannabis1 pursuant to P.L.2009, c.307 (C.24:6I-1 et al) 1[; and] .1

     b.    1[At least one other medication or treatment has been attempted and found to be unsuccessful in treating the patient’s debilitating medical condition.]

     An employer or workers’ compensation insurance carrier shall not be required to provide coverage for costs associated with the medical use of cannabis upon intervention by the federal government to enforce the "Controlled Substances Act" (21 U.S.C. s.802 et seq.).

     c.     Notwithstanding any provision of the employer’s plan or insurance policy to the contrary, 3[if for any reason payment by the employer or carrier to the medical cannabis dispensary is not feasible, the] an3 employer or carrier shall remit directly to the employee the costs for any benefits associated with the medical use of cannabis upon proof of payment by the employee to the medical cannabis dispensary.1

 

      25.  (New section)   a.   A carrier that offers a health benefits plan in this State shall provide coverage for costs associated with the medical use of cannabis provided that the covered person is a qualifying patient authorized for the medical use of cannabis pursuant to P.L.2009, c.307 (C.24:6I-1 et al).

      b.   A carrier shall not be required to provide coverage for costs associated with the medical use of cannabis upon intervention by the federal government to enforce the "Controlled Substances Act" (21 U.S.C. s.802 et seq.).

      c.   Notwithstanding any provision of the health benefits plan to the contrary, 3[if for any reason payment by the carrier to the medical cannabis dispensary is not feasible, the] a3 carrier shall remit directly to the covered person the costs for any benefits associated with the medical use of cannabis upon proof of payment by the covered person to the medical cannabis dispensary.

      d.   As used in this section:

     "Carrier" means an insurance company, health service corporation, hospital service corporation, medical service corporation, or health maintenance organization authorized to issue health benefits plans in this State or any entity contracted to administer health benefits in connection with the State Health Benefits Program or School Employees' Health Benefits Program.2

 

     36.   (New section) If any part, section, clause, paragraph, sentence, or provision, section of P.L.    c.    (C.        )(pending before the Legislature as this bill) shall be adjudged by any court of competent jurisdiction to be unconstitutional or otherwise invalid, that judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the section, clause, paragraph, sentence, or provision thereof directly involved in the controversy in which the judgment shall have been rendered.3

 

     37.   (New section) The Commissioner of Health, the Commissioner of Banking and Insurance, and the Executive Director of the Cannabis Regulatory Commission shall establish a program to ensure that employers or workers’ compensation insurance carriers, private passenger automobile insurance carriers, private health insurance carriers, and health care practitioners are in compliance with the provisions of "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.).  The program shall require an employer or workers’ compensation insurance carrier, private passenger automobile insurance carrier, private health insurance carrier, health care practitioner as defined in section 3 of P.L.2009, c.307 (C.24:6I-3), and medical cannabis dispensary as defined in section 3 of P.L.2009, c.307 (C.24:6I-3) to report information, to be determined by the Commissioner of Health, the Commissioner of Banking and Insurance, and the Executive Director of the Cannabis Regulatory Commission, to the Department of Health, the Department of Banking and Insurance, and the Cannabis Regulatory Commission.  The program may investigate and audit any of the entities required to report information pursuant to this section.3

 

     1[5.] 3[6.1] 8.3     This act shall take effect on the 90th day next following enactment.