
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: February 23, 2021
Partner
201-896-7115 dmckillop@sh-law.comAfter years of debate and delay, recreational cannabis is finally legal in New Jersey. On February 22, 2021, Gov. Phil Murphy signed “The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act” (“the Act”) into law, which legalizes and regulates cannabis use and possession for adults 21 years and older. Gov. Murphy also signed legislation decriminalizing possession of small amounts of marijuana and hashish and clarifying marijuana and cannabis use and possession penalties for individuals younger than 21 years old.
“Our current marijuana prohibition laws have failed every test of social justice, which is why for years I’ve strongly supported the legalization of adult-use cannabis. Maintaining a status quo that allows tens of thousands, disproportionately people of color, to be arrested in New Jersey each year for low-level drug offenses is unjust and indefensible,” Gov. Murphy said in a press statement. “This November, New Jerseyans voted overwhelmingly in support of creating a well-regulated adult-use cannabis market. Although this process has taken longer than anticipated, I believe it is ending in the right place and will ultimately serve as a national model.”
Gov. Murphy’s enactment of the Act sets the recreational cannabis licensing process in motion. Pursuant to the Act, the Cannabis Regulatory Commission (CRC) must approve implementing regulations within 180 days or within 45 days of all five members of the CRC being appointed, whichever is later. (Three of the five members of the CRC have been appointed, and the remaining two will likely be appointed soon.) The regulations will contain more detailed information regarding the application process, and the CRC will simultaneously develop the applications themselves and likely issue them when the regulations are adopted. Existing medical cannabis dispensaries will have the first opportunity to obtain recreational dispensary licenses, but will only be able to do so after certifying to the State that they can fulfill the product demand of their medical cannabis patients.
Here are other important elements of the licensing provisions of the Act:
Given the delays that have plagued the cannabis legalization process, there is hope that the CRC will act expeditiously to set up the required regulatory framework. In the meantime, the Act is a good start point for assessing the requirements for cannabis license holders. For entities that are interested in entering the New Jersey cannabis industry, there are numerous legal, logistical and operational issues that must be addressed, and it is never too early to start your preparations.
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
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