A4392

An Act concerning the business treatment of cannabis establishments and amending P.L.2021, c.16.

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

1. Section 37 of P.L.2021, c.16 (C.24:6I-49) is amended to read as follows:

37. Business Treatment of Cannabis Establishments, Distributors, and Delivery Services.

With respect to the business treatment of cannabis establishments, distributors, and delivery services:

a. A financial institution, as defined by section 2 of P.L.1983, c.466 (C.17:16K-2), shall not, subject to the suspension or revocation of a charter or other available enforcement action by the Commissioner of Banking and Insurance, engage in any discriminatory activities with respect to the banking activities of a cannabis establishment, distributor, or delivery service, or the banking activities of a person associated with a cannabis establishment, distributor, or delivery service.

b. (1) [In no case shall a cannabis cultivator operate or be located on land that is valued, assessed or taxed as an agricultural or horticultural use pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).] A cannabis cultivator shall not operate or be located on land that is valued, assessed or taxed as an agricultural or horticultural use pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).

(2) As used in this paragraph, "State or local economic incentive" means a financial incentive, awarded by the State, any political subdivision of the State, or any agency or instrumentality of the State or political subdivision of the State, to any non-governmental person, association, for-profit or non-profit corporation, joint venture, limited liability company, partnership, sole proprietorship, or other form of business organization or entity, or agreed to between the government and non-governmental parties, for the purpose of stimulating economic development or redevelopment in New Jersey, including, but not limited to, a bond, grant, loan, loan guarantee, matching fund, tax credit, or other tax expenditure. “State or local economic incentive” shall not include technical assistance.

(a) (i) A person or entity issued a license to operate as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, or that
employs a certified personal use cannabis handler to perform work for or on behalf of a cannabis establishment, distributor, or delivery service shall not be eligible for a State or local economic incentive.

(ii) The issuance of a license to operate as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, or the issuance of a certification to perform work for or on behalf of a cannabis establishment, distributor, or delivery service to a person or entity that has been awarded a State or local economic incentive shall invalidate the right of the person or entity to benefit from the economic incentive as of the date of issuance of the license or certification.

The provisions of this subparagraph shall not apply to a person who is the owner of or an entity that is a minority business or women's business as those terms are defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), or a disabled veterans' business as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2), if the business operates within an impact zone as defined in paragraph (1) of subsection e. of section 19 of P.L.2021, c.16 (C.24:6I-36).

(b) (i) A property owner, developer, or operator of a project to be used, in whole or in part, by or to benefit a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, or to employ a certified personal use cannabis handler to perform work for or on behalf of a cannabis establishment, distributor, or delivery service, shall not be eligible for a State or local economic incentive during the period of time that the economic incentive is in effect.

(ii) The issuance of a license to operate as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, or issuance of a certification to perform work for or on behalf of a cannabis establishment, distributor, or delivery service at a location that is the subject of a State or local economic incentive shall invalidate the right of a property owner, developer, or operator to benefit from the economic incentive as of the date of issuance of the license or certification.

The provisions of this subparagraph shall not apply to a property owner, developer, or operator who is the owner of a minority business or women's business as those terms are defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), or a disabled veterans' business as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2), if the business operates within an impact zone as defined in subsection e. of section 19 of P.L.2021, c.16 (C.24:6I-36).

(cf: P.L.2021, c.16, s.37)

2. This act shall take effect immediately.

STATEMENT

This bill permits technical assistance to be provided to certain cannabis businesses in the State and economic incentives to be provided to minority, women’s, and disabled veterans’ cannabis businesses operating in impact zones.

Under current law, certain persons and entities that are issued a license to operate as a cannabis cultivator, manufacturer, wholesaler, distributor, retailer, or delivery service; and property owners, developers, and operators of projects that are to be used to benefit these licensees are prohibited from receiving certain State or local economic incentives. The provisions of the bill provide that these exclusions do not apply to persons who are owners of or entities that are minority businesses, women’s businesses, or disabled veterans' businesses operating in impact zones. The bill also clarifies that technical assistance provided to a person or entity under the bill is not to be considered a State or local economic incentive.