NJ Senate Committee Passes Bill to Go After Underground Legacy Operators, Reform CRC Rules

The NJ Senate Judiciary Committee has advanced S 4847, a bill aimed at targeting unlicensed cannabis operators and reforming the Cannabis Regulatory Commission (CRC). The bill gives the New Jersey State Police authority to crack down on illegal cannabis businesses, a move supported by Senator Paul Sarlo (D-36-Bergen).

The bill also raises concerns over minority, women, and veteran-owned businesses, with Senator Troy Singleton (D-7-Burlington) questioning whether the legislation could allow non-minority investors to falsely claim minority status. Archer partner, and NJ Canna Business Association (NJCBA) acting President, Bill Caruso argued that while the bill allows minority investors to be compensated, it doesn’t go far enough to protect the integrity of minority designations. “It would allow a business to exist and the minority owner to be compensated,” Bill explained, but added, “There needs to be additional wordsmithing” to prevent abuse.

The bill also proposes reforms to the Cannabis Regulatory Commission (CRC), including removing restrictions on elected officials serving as commissioners. The bill will also mandate the New Jersey Department of Labor to establish workforce impairment standards for cannabis workers, an area the CRC has yet to address.

Bill raised concerns over the CRC's ability to manage these impairment standards, noting that the issue is complex, especially when workers perform tasks that vary in risk.

Bill also highlighted that recommendations had been presented to Governor-elect Mikie Sherrill on how to improve the cannabis landscape. He noted that, had the Republican nominee for governor won, the focus on the Governor-elect's influence on the CRC would be a non-issue, but now there’s uncertainty about whether Scutari’s influence will persist under the new administration.

The bill is set for further review in the Senate Budget and Appropriations Committee on December 8th.