New Jersey Senate President Files Bill To Allow Interstate Marijuana Commerce
HUGE NEWS - States are forcing Feds hand to legalize Cannabis!
The governor of New Jersey would be authorized to enter into agreements for interstate marijuana commerce with other states that have legalized cannabis under a new bill filed by Senate President Nicholas Scutari (D).
However, the agreements could only be forged if federal law changes, or if the Justice Department issues guidance permitting such activity.
With more state adult-use marijuana markets coming online in the Northeast region, the legislation is timely, proposing to create the policy infrastructure for interstate cannabis commerce that could significantly expand the currently fragmented industry and help resolve possible supply and demand issues.
The fact that the bill is being sponsored by the Senate president—who also championed the state’s legalization law—signals that this is a serious legislative endeavor.
But the federal policy conditions that are built into the measure leave questions about the timeline for implementation even if it is passed. The bill itself would take effect immediately upon enactment, but the governor could only initiate the interstate agreements if Congress or the Justice Department gives such activity the green light.
There are also regulatory requirements that must be agreed upon by each of the participating states. The New Jersey Cannabis Regulatory Commission (CRC) and the legislature’s Joint Budget Oversight Committee would have certain oversight and rulemaking responsibilities to that end.
Under the legislation, the text of which has not yet been posted online but was obtained by Marijuana Moment on Tuesday, interstate marijuana commerce agreements would be contingent on compliance with the contracting state’s cannabis laws, including those pertaining to licensure.
The states must agree on the mode of transportation for marijuana products to be exported and imported. And such products could not be shipped through any state or jurisdiction that prohibits the activity.
Agreements could involve either medical or adult-use marijuana products. And considering that the majority of states have legalized cannabis in some form, the map of possibilities is theoretically expansive (especially as it concerns medical cannabis) as long as states and jurisdictions adopt permissive policies.
Any out-of-state marijuana business seeking to engage in cannabis commerce within New Jersey under the agreement must also receive a license from state regulators, as well as by local governments where the activity takes place.
“An agreement shall require that the contracting state impose requirements on foreign licensees with regard to cannabis and cannabis products to be sold or otherwise transferred or distributed within this State that meet or exceed the requirements applicable to State licensees,” the bill text says.
That includes meeting New Jersey rules on public health and safety standards, seed-to-sale tracking, laboratory testing of cannabis products, packaging and labeling requirements and marketing policies.
There must also be a “process for identification of adulterated or misbranded cannabis products, and the destruction of those products, using standards that meet or exceed the standards and procedures promulgated by the commission.”
The agreements would also need to include provisions that address how to handle “public health and welfare emergencies,” such as the need to promptly recall or embargo contaminated products.
“An agreement shall include provisions requiring appropriate regulatory authorities of each state to investigate instances of alleged noncompliance with the commercial cannabis regulatory rules and regulations upon request by the other state and in accordance with mutually agree-upon procedures,” the legislation says.
