Sponsored by:

Assemblyman TIMOTHY J. EUSTACE

District 38 (Bergen and Passaic)

Assemblyman REED GUSCIORA

District 15 (Hunterdon and Mercer)

Co-Sponsored by:

Assemblymen Prieto, Giblin and Assemblywoman Tucker

SYNOPSIS

Dedicates sales and use tax collections from sales of medical marijuana to the "Medical Marijuana for a Cure Fund" for medical research grants on certain debilitating medical conditions.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel

An Act dedicating "Sales and Use Tax Act" proceeds from sales of medical marijuana for medical research grants on certain debilitating medical conditions, amending section 13 of P.L.2009, c.307 (C.24:6I-11).

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

1. Section 13 of P.L.2009, c.307 (C.24:6I-11) is amended to read as follows:

13. a. The commissioner may accept from any governmental department or agency, public or private body or any other source grants or contributions to be used in carrying out the purposes of this act.

b. All fees collected pursuant to this act, including those from qualifying patients and alternative treatment centers' initial, modification and renewal applications, shall be used to offset the cost of the department's administration of the provisions of this act.

c. (1) There is established in the General Fund a special fund to be known as the "Medical Marijuana for a Cure Fund."

(2) An amount equal to the annual revenue derived from the application of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), to the extent it may otherwise be authorized pursuant to law to apply, upon the sale of useable marijuana dispensed in accordance with the "New Jersey Compassionate Use Medical Marijuana Act," P.L.2009, c.307 (C.24:6I-1 et seq.), subject to necessary adjustments made to effectuate the constitutional dedication in subparagraph b. of paragraph 7 of Section I of Article VIII of the New Jersey Constitution, shall be annually credited from the General Fund to the "Medical Marijuana for a Cure Fund."

(3) (a) The Legislature shall annually appropriate all monies credited to the "Medical Marijuana for a Cure Fund" established pursuant to this subsection for a grant program to be administered by the commissioner for the award of grants to public and private entities pursuing cures and treatment for the debilitating medical conditions to which the "New Jersey Compassionate Use Medical Marijuana Act," P.L.2009, c.307 (C.24:6I-1 et seq.) is directed. The commissioner shall prioritize grant program awards based on the following considerations: likelihood of success in establishing a cure or treatment, or progress thereto, for a debilitating medical condition; capacity to reduce the medical need for useable marijuana dispensation in accordance with the "New Jersey Compassionate Use Medical Marijuana Act," P.L.2009, c.307 (C.24:6I-1 et seq.); and potential for synergistic effects in the State's medical research community.

(b) The commissioner is authorized to use amounts appropriated from the "Medical Marijuana for a Cure Fund" for the grant program authorized pursuant to this subsection for the costs incurred in the administration of the grant program.

(cf: P.L.2009, c.307, s.13)

2. This act shall take effect immediately and apply to State fiscal years beginning on or after the date of enactment.

STATEMENT

This bill dedicates the sales and use tax collections from the sale of medical marijuana to the "Medical Marijuana for a Cure Fund" for medical research grants on certain debilitating medical conditions. The purpose of this bill is to tie the sales and use tax collections on medical marijuana to medical research that will alleviate the hardships necessitating medical marijuana.

The executive branch has recently announced that it has interpreted the "Sales and Use Tax Act" to apply to the dispensation of medical marijuana. Generally, this means that there will be a seven percent sales tax imposed on the sales price of medical marijuana. This bill establishes a statutory dedication that calls for those sales tax proceeds to be used for medical research aimed at alleviating the afflictions that necessitate medical marijuana.

More specifically, the bill calls for the sales tax proceeds collected on medical marijuana to be credited to the "Medical Marijuana for a Cure Fund," which is established by the bill. The bill calls upon the Legislature to annually appropriate the fund balance for a medical research grant program that is to be administered by the Department of Health. The bill directs the Commissioner of Health to weigh medical research grant applications based on three factors: (i) likelihood of success in pursuing a cure or treatment for a debilitating medical condition; (ii) capacity to reduce the medical need for medical marijuana; and (iii) potential for generating synergistic effects in the State's medical research community. The grant program is open to both public and private recipients.

The bill is scheduled to take effect immediately and apply to State fiscal years beginning on or after the date of enactment.