Sponsored by:
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Assemblyman Zwicker
SYNOPSIS
Establishes program to subsidize purchase price of medical cannabis for registered qualifying patients enrolled in Medicaid or NJ FamilyCare programs.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning medical cannabis, amending P.L.2021, c. (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), and supplementing P.L.2009, c.307 (C.24:6I-1 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 41 of P.L.2021, c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021) is amended to read as follows:
41. Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund.
a. All fees and penalties collected by the commission, and all tax revenues on retail sales of cannabis items, and all tax revenues collected pursuant to the provisions of the “Jake Honig Compassionate Use Medical Cannabis Act,” P.L.2009, c.307 (C.24:6I-1 et al.), except for amounts credited to the Property Tax Reform Account in the Property Tax Relief Fund pursuant to paragraph 7 of Section I of Article VIII of the New Jersey Constitution, as well as all revenues, if any, collected for the Social Equity Excise Fee pursuant to section 39 of P.L.2021, c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), shall be deposited in a special nonlapsing fund which shall be known as the “Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund.”
b. Monies in the fund, other than any monies derived from the Social Equity Excise Fee to be appropriated annually in accordance with subsection d. of this section, shall be appropriated annually as follows:
(1) at least 70 percent of all tax revenues on retail sales of cannabis items shall be appropriated for investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an “impact zone” pursuant to section 3 of P.L. , c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission; and
(2) the remainder of the monies in the fund shall be appropriated by the Legislature to include the following:
(a) to oversee the development, regulation, and enforcement of activities associated with the personal use of cannabis pursuant to P.L.2021, c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), and assist with assuming responsibility from the Department of Health for the further development and expansion, regulation, and enforcement of activities associated with the medical use of cannabis pursuant to the “Jake Honig Compassionate Use Medical Cannabis Act,” P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.);
(b) to reimburse the expenses incurred by any county or municipality for the training costs associated with the attendance and participation of a police officer from its law enforcement unit, as those terms are defined in section 2 of P.L.1961, c.56 (C.52:17B-67), in a program provided by an approved school, also defined in that section, which trains and certifies the police officer, including a police officer with a working dog as that term is defined in section 1 of P.L.2006, c.88 (C.10:5-29.7), as a Drug Recognition Expert for detecting, identifying, and apprehending drug-impaired motor vehicle operators, and pay for the same training costs incurred by the Division of State Police in the Department of Law and Public Safety for the training of a State police officer or trooper, including an officer or trooper with a working dog, as a Drug Recognition Expert, as well as its costs in furnishing additional program instructors to provide Drug Recognition Expert training to police officers, troopers, and working dogs. A municipality or county seeking reimbursement shall apply to the commission, itemizing the costs, with appropriate proofs, for which reimbursement is requested and provide a copy of the certificate issued to the police officer to indicate the successful completion of the program by the police officer, and that officer’s working dog, if applicable; [and]
(c) for further investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an “impact zone” pursuant to section 3 of P.L. , c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission; and
(d) to reimburse medical cannabis dispensaries and clinical registrants for subsidies applied to the purchase price of medical cannabis and medical cannabis products pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The monies appropriated pursuant to paragraph (1) of this subsection shall be offset by any revenue constitutionally dedicated to municipalities defined as an “impact zone” pursuant to section 3 of P.L. , c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021).
c. Any remaining available monies, after the appropriation of those monies in the fund in accordance with subsection b. of this section, shall be deposited in the State’s General Fund.
d. (1) (a) Not less than 60 days prior to the first day of each State fiscal year, the commission shall consult and make recommendations to the Governor and Legislature for making social equity appropriations based upon the amount of any revenues collected during the current fiscal year for the Social Equity Excise Fee pursuant to section 39 of P.L. , c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), or, if the commission has not imposed or adjusted the excise fee in the current fiscal year pursuant to that section, then appropriations to be made from the General Fund in an amount equal to the revenues that would have been collected had it imposed or adjusted the fee, in order to invest, through grants, loans, reimbursements of expenses, and other financial assistance, in private for-profit and non-profit organizations, public entities, including any municipality defined as an “impact zone” pursuant to section 3 of P.L. , c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), as well as provide direct financial assistance to qualifying persons as determined by the commission, in order to create, expand, or promote educational and economic opportunities and activities, and the health and well-being of both communities and individuals.
(b) Not less than 30 days prior to submitting its recommendations to the Governor and Legislature pursuant to subparagraph (a) of this paragraph, the commission shall hold at least three regional public hearing throughout the State, with at least one hearing in the northern, central, and southern regions of the State, to solicit the public input on the social equity investments to be made as described in this section.
(2) The commission’s recommendations to the Governor and Legislature may include, but are not limited to, recommending investments in the following categories of social equity programs:
(a) educational support, including literacy programs, extended learning time programs that endeavor to close the achievement gap and provide services for enrolled students after the traditional school day, GED application and preparedness assistance, tutoring programs, vocational programming, and financial literacy;
(b) economic development, including the encouragement and support of community activities so as to stimulate economic activity or increase or preserve residential amenities, and business marketing, and job skills and readiness training, specific employment training, and apprenticeships;
(c) social support services, including food assistance, mental health services, substance use disorders treatment and recovery, youth recreation and mentoring services, life skills support services, and reentry and other rehabilitative services for adults and juveniles being released from incarceration; and
(d) legal aid for civil and criminal cases.
(3) The commission may also, subject to the annual appropriations act, recommend that it retain a portion of the Social Equity Excise Fee to administer startup grants, low-interest loans, application fee assistance, and job training programs through the commission’s Office of Minority, Disabled Veterans and Women Cannabis Business Development established by section 32 of P.L.2019, c.153 (24:6I-25).
(4) Prior to the first day of each fiscal year, the Legislature shall provide to the commission a statement which lists the investments, including the investment recipients and investment amount, to be made by appropriations as set forth in paragraph (1) of this subsection based upon recommendations presented to the Governor and Legislature pursuant to paragraphs (1) through (3) of this subsection, and how the investment is intended to support and advance social equity as described in this subsection.
(cf: P.L.2021, c. , s.41 (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021))
2. (New section) a. The commission shall establish a program to subsidize up to 20 percent of the purchase price of medical cannabis and medical cannabis products dispensed to or on behalf registered qualifying patients who are currently enrolled in the State Medicaid program established pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) or the NJ FamilyCare program established pursuant to P.L.2005, c.156 (C.30:4J-8 et al.). The subsidy shall reduce the purchase price of the medical cannabis or medical cannabis product as listed on the medical cannabis dispensary’s or clinical registrant’s website pursuant to subsection h. of section 7 of P.L.2009, c.307 (C.24:6I-7), and shall be applied at the point of sale after any other discounts or price reductions are applied.
b. The program developed by the commission pursuant to subsection a. of this section shall include a mechanism for medical cannabis dispensaries and clinical registrants to quickly verify whether a registered qualifying patient to whom, or on behalf of whom, medical cannabis or a medical cannabis product is being dispensed, is currently enrolled in Medicaid or NJ FamilyCare. The commission shall coordinate with the Division of Medical Assistance and Health Services in the Department of Human Services in developing the enrollment verification system pursuant to this subsection.
c. A medical cannabis dispensary or clinical registrant shall provide notice of the subsidy program to registered qualifying patients and their designated and institutional caregivers through the use of posted signage, and may provide additional notice of the program verbally, through written materials, or both, but shall not apply the subsidy to a purchase of medical cannabis or a medical cannabis product, or attempt to verify a patient’s status as an enrollee in Medicaid or NJ FamilyCare, except at the request of the patient or the patient’s designated or institutional caregiver.
d. The commission shall establish a process for medical cannabis dispensaries to apply for and receive reimbursement from the commission for the amount of any subsidies applied to the purchase price of medical cannabis and medical cannabis products pursuant to this section.
e. Reimbursements for subsidies applied to the purchase of medical cannabis and medical cannabis products pursuant to this section shall be paid to medical cannabis dispensaries and clinical registrants out of funds available through the “Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund” established pursuant to section 41 of P.L.2021, c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021), or other funds made available to the commission for this purpose.
3. This act shall take effect 90 days after the effective date of P.L.2021, c. (C. ) (passed both Houses on December 17, 2020 as Assembly Bill No. 21(2R) of 2020/2021).
STATEMENT
This bill requires the Cannabis Regulatory Commission (CRC) to establish a program to subsidize up to 20 percent of the purchase price of medical cannabis and medical cannabis products dispensed to or on behalf registered qualifying patients who are currently enrolled in the State Medicaid program or the NJ FamilyCare program. The subsidy will reduce the purchase price of the medical cannabis or medical cannabis product as listed on the medical cannabis dispensary’s or clinical registrant’s website, and will be applied after any other discounts or price reductions are applied. The price reduction will apply at the point of purchase.
The program developed by the CRC will include a mechanism for medical cannabis dispensaries and clinical registrants to quickly verify whether a registered qualifying patient to whom or on behalf of whom medical cannabis or a medical cannabis product is being dispensed is currently enrolled in Medicaid or NJ FamilyCare. The CRC will be required to coordinate with the Division of Medical Assistance and Health Services in the Department of Human Services to develop this enrollment verification system. Medical cannabis dispensaries and clinical registrants are to make patients and their caregivers aware of the subsidy program through posted signage, and may provide additional notice of the program verbally, using written materials, or both, but are not to apply a subsidy or attempt to verify whether a patient is enrolled in Medicaid or NJ FamilyCare except at the request of a patient or the patient’s designated or institutional caregiver.
The CRC will additionally be required to establish a process for medical cannabis dispensaries to apply for and receive reimbursement from the CRC for the amount of any subsidies applied to the purchase price of medical cannabis and medical cannabis products under the bill. Reimbursements for the subsidies will be paid out of funds available through the “Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund” established pursuant to Assembly Bill No.21(2R) of 2020/2021, which passed both Houses on December 17, 2020, or other funds made available to the CRC for this purpose.
The bill will take effect 90 days after the effective date of Assembly Bill No.21(2R) of 2020/2021.