New Jersey Cannabis Laws

Expansion of Ingestible Cannabis Products: The Cannabis Regulatory Commission (CRC) has proposed new rules to allow an expanded range of ingestible cannabis products, including baked goods, chocolates, butter, jams, and drinks, to be sold in both the medicinal and recreational markets.

Product Regulations: These newly proposed products must adhere to strict regulations, including clear nutrition information, warning labels, expiration dates, child-resistant packaging with no appealing imagery, and must not contain alcohol or nicotine. Products must also be ready to consume and produced by staff trained in food safety.

THC Limits: The proposed regulations limit edibles to 10 milligrams of THC per serving and drinks to 5 milligrams. This ensures responsible consumption, especially with cannabis-infused beverages.

Safety Testing: All cannabis products, including edibles, will be required to undergo third-party testing, including testing for contaminants like salmonella and E. coli, before being sold.

Consumer Safety: The CRC prioritizes consumer safety and confidence in the regulated cannabis market, taking time to research and ensure the safety of ingestible products.

Anticipated Market Growth: The introduction of edibles is expected to attract new consumers who prefer alternative consumption methods. The global market for consumables is projected to grow significantly.

Economic Impact: The expansion of product offerings is likely to drive investment into the state's cannabis industry, including partnerships between brands and existing operators in New Jersey's adult-use cannabis market.

Market Potential: With the proper regulations, New Jersey has the potential to generate significant revenue from the sale of beverages and edibles, based on the growth of the global consumables market.

• Cannabis is legal for both medical and recreational use in New Jersey.
• Recreational cannabis became legal in January 2021 after the passing of the Marijuana Legalization Amendment.
• On February 22, 2021, New Jersey Governor Murphy signed a constitutional amendment called the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act.
• Medical cannabis was legalized in 2010 via the Compassionate Use Medical Marijuana Act (CUMMA).
• The Medical Marijuana Program (MMP) was fully opened in August 2012 after a two-year delay.
• Licensed sales of recreational cannabis began on April 21, 2022.
• Adults 21+ in New Jersey can possess up to 6 ounces of cannabis.
• Cannabis can not currently be grown at home.

To help you navigate New Jersey's cannabis dispensary laws, here are some key laws and regulations you should be aware of:

• Medical Use: Medical marijuana has been legal in New Jersey since 2010, allowing patients to access cannabis for medical purposes.
• Recreational Use: Recreational cannabis became legal on January 1, 2021, following the approval of the Marijuana Legalization Amendment by voters in November 2020.
• Purchase Limits: Dispensaries are allowed to sell up to the equivalent of 28.35 grams (1 ounce) of usable cannabis in each transaction.
• Product Categories: A range of cannabis products can be sold, including dried flowers, edibles, concentrates, oils, tinctures, topicals, and more.
• Pricing and Tax: Prices vary by location and product, with transactions subject to a New Jersey sales tax of 6.625% and a social equity excise fee.

New Jersey residents who are at least 21 years of age or older and have a valid government-issued id will be allowed to possess up to 6 ounces of cannabis.

So far, Medical patients were only allowed a purchase limit of 50 g or less and anything above that warranted harsh penalties, but changes will be enacted from Jan 2021, and now an adult can carry up to 170 g of marijuana at any time.

Patients with the following conditions can qualify for medical marijuana use:

• Addiction substitute therapy for opioid reduction
• Amyotrophic Lateral Sclerosis (ALS)
• Anxiety
• Cancer (includes associated chronic pain and/or severe nausea)
• Chronic pain
• Chronic visceral pain
• Crohn’s disease
• Dysmenorrhea (menstrual cramps)
• Epilepsy
• Glaucoma
• HIV/AIDS (includes associated chronic pain and/or severe nausea)
• Inflammatory bowel disease (IBD)
• Migraines
• Multiple Sclerosis
• Muscular Dystrophy
• Opioid dependency
• Post-Traumatic Stress Disorder
• Seizure and/or spasticity disorders
• Tourette’s syndrome

Any terminal illness if a doctor has determined the patient will die within a year Visit the Division of Medical Marijuana for more details.

No, S21 does not allow New Jersey residents to cultivate cannabis at home. The only legal cannabis in the state will be cannabis grown at a state-licensed cultivation facility, and there will remain stiff criminal penalties for home cannabis growers, as before.

Under New Jersey’s state law, cultivation of ten or more marijuana plants is a felony crime, punishable by a $150,000 fine or up to ten years in prison.

New Jersey marijuana users may only consume cannabis in the privacy of their homes.

For all new cannabis retail licenses, including medical marijuana, licenses will be awarded by the Cannabis Regulatory Commission.

Residents of New Jersey, aged 21 and above can apply for a business license, either alone or in partnership with someone. In order to open a recreational cannabis dispensary, one must apply for a Class 5 Cannabis Retailer license, issued by the CRC.

The CRC will determine the maximum number of licenses, of which at least 35% shall be conditional licenses and at least 10% of the total number of licenses shall be issued to microbusinesses.

However, social equity considerations have been taken into account by introducing exclusive business incentives for disproportionately impacted communities, and 30% of all legal cannabis licenses will be awarded to businesses owned by women, minorities, or disabled veterans.

Requirements:

• At least one significantly involved person in the business must have resided in NJ for at least two years as of the date of application.
• All requirements of any rule adopted by the CRC regarding the payment for the application fees, public health and safety standards, and industry best practices must be met.
• Each of the owners, directors, officers, and employees must undergo a criminal history record background check.

For the first 18 months, no business will be allowed to have both cultivation and retail cannabis licenses. There will be additional restrictions against vertical integration that will prevent the formation of possible monopolies.

An existing medical cannabis operator could begin adult-use sales immediately after rules are issued – but only if the company can prove it has sufficient supply to meet medical marijuana demand, which must be prioritized.

The newly formed Cannabis Regulatory Commission will begin accepting and processing applications for licenses and conditional licenses on March 15, 2022.

Permanent license: If approved, a license would be issued by the commission not later than 30 days after a notice of approval has been given, unless the applicant is found to not be in compliance with relevant regulations or local regulating ordinances applicable to their business operations. An issued license would expire after one year but could be renewed following submission of a new application, in which the applicant would detail aspects of the cannabis licensee's operations and on-going compliance measures as part of the renewal process.

Conditional license: The applicant would not need to be in compliance with every aspect of the regulatory requirements expected for full licensure in order to obtain a conditional license, but would need to provide sufficient plans for actions to be taken to eventually achieve compliance for full licensure. During a 120-day period following issuance of the conditional license, if it is determined that the conditional licensee is in compliance with all plans to achieve full licensure, it would replace the conditional license with a full, annual license, dated to expire one year from its date of issuance, otherwise, the conditional license would expire after the 120 days period.

The CRC would determine the maximum number of licenses for each class based on market demand. Watch this space for more details on the application process, as and when CRC updates them on its website.

The social equity rules in NJ establish three types of cannabis businesses that will receive priority review and approval in the application process:

• • Social Equity Businesses, which are owned by people who have lived in economically disadvantaged areas of the state or who have past convictions for cannabis offences.
• • Diversely Owned Businesses, which are minority-owned, woman-owned, or disabled veteran-owned and certified as such by the New Jersey Department of the Treasury in one or more of the listed categories.
• • Impact Zone Businesses, which are located in an Impact Zone, owned by people from Impact Zones, or employ residents of Impact Zones.

Note: Under the statute, Impact Zones are municipalities with a large population, high unemployment rate, or high numbers of crime or arrests for marijuana.

Each municipality has its own laws and regulations regarding this, and although the state of New Jersey has legalized recreational cannabis, municipalities are allowed to implement the law as they please. So read up more on your region-specific regulations before deciding on a location.

Licensed adult-use marijuana retailers may sell cannabis to adults aged 21 and older, with a valid government-issued identification card, and employees are required to check purchasers’ IDs before making the sale.

Marijuana stores may sell cannabis, cannabis resin, cannabis products and cannabis extracts, but seedlings, immature marijuana plants and marijuana paraphernalia are prohibited.

All cannabis items will be packaged in fully enclosed child-resistant packaging and will be labeled with information and any warnings required by law, a summary of the product testing results, any ingredients used in cultivation or production of the cannabis item, and the serving size. For cannabis flower, in addition to the potency from the test results, labels will note whether the flower is high-, moderate-, or low-THC and whether it is high-, moderate-, or low-CBD, consistent with its chemotype.

Labels will contain health warnings for consumers urging them to avoid driving or operating heavy machinery while using cannabis, potentially avoid use altogether when pregnant or breastfeeding, and will note that high potency products may present risks to mental health.

Packaging andMarijuana stores may sell cannabis, cannabis resin, cannabis products and cannabis extracts, but seedlings, immature marijuana plants and marijuana paraphernalia are prohibited.

All cannabis items will be packaged in fully enclosed child-resistant packaging and will be labeled with information and any warnings required by law, a summary of the product testing results, any ingredients used in cultivation or production of the cannabis item, and the serving size. For cannabis flower, in addition to the potency from the test results, labels will note whether the flower is high-, moderate-, or low-THC and whether it is high-, moderate-, or low-CBD, consistent with its chemotype.

Labels will contain health warnings for consumers urging them to avoid driving or operating heavy machinery while using cannabis, potentially avoid use altogether when pregnant or breastfeeding, and will note that high potency products may present risks to mental health.

Packaging and labelling will be prohibited from containing any false or misleading statements, or any imagery that could be attractive to kids, and once established, will contain a universal warning symbol designated by the Commission. will be prohibited from containing any false or misleading statements, or any imagery that could be attractive to kids, and once established, will contain a universal warning symbol designated by the Commission.

Adult-use sales would be taxed at 7%. Municipalities could charge local sales taxes of up to 2%.

The CRC also could levy a small “social equity excise fee” on marijuana growers that would fluctuate depending on the average retail price of cannabis.

Learn more about the cost of opening a dispensary in NJ.

Yes, delivery of medical marijuana to patients in New Jersey is permitted, but the health department requires anyone delivering cannabis to have a GPS tracking system on their vehicles. Home delivery of recreational cannabis will be allowed as well, but retailers must seek permission from local municipalities for the same.

Businesses providing courier services to a licensed cannabis retailer must apply for an exclusive Cannabis Delivery license in order to make deliveries of cannabis items and related supplies to a consumer.

Retailer licensees can start sales of cannabis items on any date after the date that the Cannabis Regulatory Commission adopts its initial rules and regulations. Retailers can legally sell to persons 21 years of age or older, so long as the municipality in which it is located is engaged in retail sales.

Prior to and during this transition phase leading up to eventual retail sales of cannabis items, every municipality would have the option to authorize and regulate the times of operation, place, manner, and number of licensed cannabis businesses operating within its jurisdiction, in a manner consistent with the bill's regulation of such businesses.

More details to come.

Cannabis businesses will be allowed to advertise, but with significant restrictions. Advertising will be restricted to mediums where the audience is determined to be primarily over the age of 21. TV and radio ads will only be allowed between 10:00 PM and 6:00 AM, and advertisers will be restricted from promoting overconsumption or making any claims not supported by credible research.

Most states require dispensaries and cannabis stores to track and trace all of their cannabis products for regulatory and compliance reporting requirements. Records identifying the source of each ingredient must include the date of receipt of the ingredient, vendor’s name and address, name of the ingredient, etc. The vendor’s batch number, lot number of the product and control number used to identify all components in the marijuana product(s), as well as the grade and quantity must be mentioned in inventory reports.

New Jersey has not appointed an official cannabis monitoring system yet, and both Metrc and Bio-track are currently vying for this coveted partnership.

Yes, Cova's Cannabis Dispensary POS Software and inventory management system includes all the features needed to keep cannabis retailers compliant, including:

• ID scanner for age and patient card verification
• Integrated inventory and sales tracking and reporting
• Built-in product equivalency conversions and purchase limit enforcement

• How to Open a Cannabis Dispensary in New Jersey
• How to Apply for a Cannabis Retailer License in New Jersey
• How Much Does it Cost to Open a Cannabis Dispensary in New Jersey?
• Case Study: Pharmacists and Women-Owned Dispensary in NJ
• How to Open a Dispensary in New Jersey Webinar

In conclusion, understanding New Jersey's cannabis dispensary laws is essential for both consumers and dispensaries. With a legal framework that distinguishes between medical and recreational use for cannabis retailers, it's crucial to stay updated on the latest regulations and compliance requirements. By adhering to the law, you can responsibly navigate the world of cannabis in New Jersey and contribute to a thriving and legal industry.