A3535

An Act concerning certain financial assistance provided by the New Jersey Economic Development Authority and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).

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

1. a. The New Jersey Economic Development Authority shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations prohibiting a business that receives financial assistance from the authority from taking any adverse employment action against an employee or prospective employee based upon a finding that the employee or prospective employee has used or tested positive for the use of marijuana, unless:

(1) failure to take the adverse employment action would cause the business to lose a monetary or licensing-related benefit under State or federal law or regulations;

(2) the employee ingested or possessed marijuana on the premises of the business or during work hours;

(3) the use of marijuana by the employee poses an actual threat of harm or danger to persons or property; or

(4) the use of marijuana by the employee makes the employee incapable of performing an essential job duty.

b. As a condition of receiving financial assistance, a business shall enter into a standard contract agreement with the authority. The authority shall develop the standard contract agreement, which shall require that the business comply with requirements of this section. The standard contract agreement shall include provisions:

(1) establishing conditions under which the authority may terminate the continued provision of financial assistance for violations of this section; and

(2) establishing conditions under which the authority may recapture financial assistance for violations of this section.

c. For the purposes of this section:

"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4);

"Business" means a corporation that is subject to the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5); a corporation that is subject to the tax imposed pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and C.54:18A-3); a corporation that is subject to the tax imposed pursuant to section 1 of P.L.1950, c.231 (C.17:32-15) or N.J.S.17B:23-5; a partnership; an S corporation; a limited liability company; or a non-profit corporation.

"Financial assistance" means any loan, loan guarantee, grant, incentive, tax exemption, tax credit, or other financial assistance that is approved, funded, authorized, administered, or provided by the authority to any business.

"Marijuana" means all parts of the plant genus Cannabis, whether growing or not; the seeds thereof; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant; but shall not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks, fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

2. This act shall take effect on the 90th day after enactment.

STATEMENT

This bill requires the New Jersey Economic Development Authority (authority) to adopt rules and regulations prohibiting a business that receives financial assistance from the authority from taking any adverse employment action against an employee or prospective employee based upon a finding that the employee or prospective employee has used or tested positive for the use of marijuana.

Under the bill, however, a business that receives such financial assistance may take adverse employment action against an employee if (1) failure to so would cause the business to lose a monetary or licensing-related benefit under State or federal law or regulations; (2) the employee ingested or possessed marijuana on the premises of the business or during work hours; (3) marijuana use by the employee poses an actual threat of harm or danger to persons or property; or (4) marijuana use by the employee makes the employee incapable of performing an essential job duty.

Under the bill, a business that receives financial assistance from the authority is required enter into a standard contract agreement, developed by the authority, mandating that the business comply with the requirements of the bill. The bill requires the authority to include provisions in the standard contract agreement for the discontinuation and recapture of financial assistance for violations of the bill.