By Timothy S. Donahue

Top Takeaways:

• New Jersey Senate President Nick Scutari has introduced legislation (S4154) to criminalize the purchase of cannabis from unlicensed sources, aiming to curb the state’s illicit cannabis market.
• The bill proposes a third-degree crime for operating an unlicensed cannabis business and a disorderly persons offense for knowingly purchasing from one, with harsher penalties for those leading illegal networks.
• Cannabis advocates argue that the bill undermines the goals of legalization, potentially harming patients and consumers who rely on more affordable, unregulated sources.

In an effort to combat a persistent illicit cannabis market, New Jersey Senate President Nick Scutari has introduced a bill (S4154) that would criminalize both the sale and purchase of unlicensed cannabis products. The proposal aims to reinforce the state’s regulated cannabis industry by imposing stricter penalties on unauthorized transactions.

Under the proposed legislation, operating an unlicensed cannabis business would constitute a third-degree felony, punishable by three to five years in prison and fines up to $15,000. Individuals who knowingly purchase cannabis from unlicensed sources would face a disorderly conduct charge, carrying penalties of up to six months in jail and a $1,000 fine. Those identified as leaders of illegal cannabis networks could be charged with a second-degree felony, facing five to 10 years in prison and fines up to $150,000 .

“We have a problem where people are opening up brick-and-mortar stores, small stores, unlicensed to sell these products, and quite frankly, they’re just selling them and this state is doing nothing about it,” Scutari stated during a Senate Judiciary Committee hearing. “We need to do something more about those brick-and-mortar stores, but we also need to continue to fight back against drug dealers because those are alive and well.”

Scutari, a long-time advocate for cannabis legalization, emphasized that the bill seeks to protect the integrity of the legal market, which has generated over $1 billion in sales since its inception in April 2022. He expressed concern that the flourishing black and gray markets undermine the state’s efforts to regulate cannabis effectively.

However, the proposal has faced criticism from cannabis advocates and some lawmakers who argue that it contradicts the principles of legalization and could disproportionately affect patients and low-income consumers. Larry Grant, a cancer survivor and board member of the Coalition for Medical Marijuana, labeled the bill as “deeply unethical” and a step backward. “People with cancer or chronic pain disability could be arrested simply for accessing a plant that helps them survive,” Grant said. “Recriminalization is not regulation. It’s retaliation.”

Attorney Bill Caruso, who played a significant role in shaping New Jersey’s cannabis laws, also voiced opposition to the bill. He urged lawmakers to consult with local officials and law enforcement to find more effective solutions to unlicensed sales without penalizing consumers. “We don’t need to reinvent the wheel here, and I don’t think we need to go backwards in recriminalizing particularly consumers,” Caruso stated .

Some legislators have pointed fingers at the Attorney General’s Office for inadequate enforcement of existing cannabis laws. Senator Mike Testa criticized Attorney General Matt Platkin for what he described as “absentee” leadership, while Senator Jon Bramnick suggested that the lack of enforcement erodes public trust in government.

In response, Platkin’s spokesperson, Michael Symons, affirmed the office’s commitment to enforcing cannabis regulations but acknowledged the challenges posed by unregulated sales. “The challenge presented by unregulated marijuana and hemp sales is pervasive. We look forward to continuing to work with the Legislature to address some of the issues and concerns with clarifying legislation, so that unwanted loopholes are closed and further enforcement efforts are successful,” Symons said .

As of now, the bill has been introduced in the Senate and referred to the Senate Judiciary Committee. It has not yet been scheduled for a vote, nor does it have a companion bill in the Assembly.