New Jersey Cannabis Regulatory Overview
New Jersey’s Question 1, a ballot initiative authorizing an adult-use cannabis marketplace passed November 2, 2020. However, it required state lawmakers pass enabling legislation. Three bills were signed into law by Gov. Phil Murphy on February 22, 2021 setting up a tax-and-regulate scheme in the Garden State.
The state’s five-member Cannabis Regulatory Commission was officially vested with its regulatory authority on April 12, 2021. Adult-use sales are expected to commence mid-to-late 2021.
New Jersey Cannabis License Overview
New Jersey will issue 7 types of primary commercial adult-use cannabis licenses: (1) Cannabis Cultivator, (2) Cannabis Manufacturer, (3) Cannabis Wholesaler, (4) Cannabis Distributor, (5) Cannabis Retailer, (6) Cannabis Delivery Service, and (7) Cannabis Testing Facility.
New Jersey Cannabis Key Regulators
The New Jersey Cannabis Regulatory Commission is tasked with regulating the state’s adult-use cannabis marketplace and is required to adopt the rules and regulations needed to carry out such duties within 180 days of the enactment of the bills signed by Gov. Murphy.
Then, the Commission must issue licenses to begin retail sales, which shall be within 180 days of the adoption of those rules.
New Jersey Cannabis Locality Options
Municipalities may enact restrictions on the type and number of cannabis businesses and certain operating restrictions, but cannot prohibit cannabis deliveries from being made within their boundaries. Opt-out ordinances must be passed by August 22, 2021, or a municipality must wait 5 years before passing such a law.