New Jersey Legalizes Cannabis and Sets Equity Standards
On February 22, 2021, New Jersey became the 14th state to legalize cannabis for adults 21+. Gov. Murphy signed three bills after a ballot referendum in November 2020 showed strong public support.
- Medical patients can buy up to three ounces every 30 days.
- Adult-use consumers can buy up to one ounce per transaction.
- Sales began on April 21, 2022, with $2 million in purchases on opening day.
Social Equity and Licensing
New Jersey prioritized social equity applicants:
- 25% of licenses go to social equity businesses or those hiring 25% of employees from impact zones.
- Excise tax revenue funds grants, loans, and community investments.
- License fees and penalties go to the Cannabis Enforcement Assistance and Marketplace Modernization Fund.
The Cannabis Regulatory Commission (CRC) approved 30 new medical licenses in December 2021, doubling dispensary numbers. Recreational license applications opened in March 2022.
Adult-Use Market Rules
On August 19, 2021, the CRC set initial rules for cannabis businesses:
- Priority applications for minority-, women-, and veteran-owned businesses.
- Flexible application rules for microbusinesses and conditional licenses.
- Application fees as low as $100.
Medical Cannabis Program Expansion
Jake’s Law (2019) improved New Jersey’s medical cannabis program:
- Expanded qualifying conditions, including chronic pain.
- Introduced anti-discrimination protections for housing, education, and employment.
- Allowed home delivery and increased cultivation, retail, and manufacturing licenses.
Stay Connected
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