SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 3486

With committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 26, 2025

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 3486 (1R).

Since the enactment of P.L.2019, c.153 (C.24:6I-5.1 et al.), which created a permit process to operate a medical cannabis dispensary, an entity that has obtained this permit from the Cannabis Regulatory Commission (CRC) has been prohibited from establishing a satellite location from which it may also dispense medical cannabis to registered qualifying patients.  The bill would authorize an entity with this permit, upon approval of the commission, to establish and maintain up to two satellite locations.  Under the bill, a medical cannabis dispensary is permitted to operate two satellite locations.  As amended, the bill also permits an alternative treatment center which has been issued a permit to dispense medical cannabis from a medical cannabis dispensary to maintain up to two satellite dispensary locations.

      Under current law, a CRC member is prohibited from holding outside employment.  As amended, the bill permits a CRC member to hold local elected office, provided that, in the judgment of the State Ethics Commission and the Local Finance Board of the Department of Community affairs, such office or employment will not interfere with the member’s responsibilities to the commission, and will not create a conflict of interest, or reasonable risk of the public perception of a conflict of interest, on the part of the CRC member.

      As amended, the bill revises the post-employment restrictions for employees with respect to partnerships, firms, and corporations being prohibited from representing or appearing for a cannabis business from two years to one year.

      The amended bill also clarifies the appointment process for membership of the commission.  Under current law, one member is appointed by the Governor upon recommendations by each of the Senate President and the Speaker of the General Assembly, and three members are appointed by the Governor without requiring a recommendation.  The amended bill clarifies that members are directly appointed as follows: one by the Senate President; one by the Speaker of the General Assembly; and three by the Governor.  The Governor’s three appointees will remain subject to the Senate’s advice and consent.

COMMITTEE AMENDMENTS:

      The committee amendments to the bill:

      (1) permit any ATC, including those issued a permit prior to P.L.2019, c.153, to maintain up to two satellite dispensaries;

      (2) permit a CRC member to hold local elected office under certain circumstances;

      (3) clarify the appointment process of CRC members; and

      (4) clarify post-employment restrictions placed on State employees.

FISCAL IMPACT:

      This bill has not been certified as requiring a fiscal note.