a. Subject to subsection b. of this section, the commission shall adopt rules or regulations restricting the size of mature cannabis plant grow canopies at premises for which a license has been issued to a cannabis cultivator pursuant to P.L.2021, c.16 (C. 24:6I-31 et al.).

b. When adopting rules and regulations under this section, the commission shall consider whether to:

(1) Limit the size of mature cannabis plant grow canopies for premises where cannabis is grown outdoors and for premises where cannabis is grown indoors in a manner calculated to result in premises that produce the same amount of harvested cannabis leaves and harvested cannabis flowers, regardless of whether the cannabis is grown outdoors or indoors;

(2) Adopt a tiered system under which the permitted size of a cannabis cultivators’ mature cannabis plant grow canopy may increase or decrease at the time of licensure renewal in accordance with that tiered system, except that the permitted size of a cannabis cultivator’s mature cannabis plant grow canopy may not increase following any year during which the commission disciplined the cannabis cultivator for violating a provision of, or a rule or regulation adopted under, a provision of P.L.2021, c.16 (C. 24:6I-31 et al.); provided, that at the time of adoption, any growing or cultivation square footage previously approved or authorized for an alternative treatment center that was issued a permit prior to the effective date of P.L.2019, c.153 (C. 24:6I-5.1 et al.), or that was issued a permit on or after that effective date pursuant to an application submitted prior to that effective date, shall not be reduced, but the commission’s adopted tiered system shall apply to the growing or cultivation square footage of that alternative treatment center thereafter;

(3) Take into consideration the market demand for cannabis items in this State, the number of persons applying for a license pursuant to sections 20, 22, 23, 24, 25, and 26 of P.L.2021, c.16 (C.24:6I-37, C.24:6I-39, C.24:6I-40, C.24:6I-41, C.24:6I-42, and C. 24:6I-43), and to whom a license has been issued pursuant to those sections, and whether the availability of cannabis items in this State is commensurate with the market demand.

c. This section shall not apply to premises for which a license has been issued to a cannabis cultivator pursuant to section 20 of P.L.2021, c.16 (C. 24:6I-37), if the premises is used only to propagate immature cannabis plants.

L.2021, c.16, s.21.