New Jersey voters approved Public Question No. 1 during the 2020 general election to legalize recreational cannabis for adults 21 and over. Governor Phil Murphy, D, legalized recreational cannabis at the end of February. In the initial bill, called A5342, towns and municipalities within the state have until August 21 to opt out of cannabis businesses being in their area. Otherwise state law would allow businesses to be locked in for five years before any changes could be made. 

Also on August 21, the state’s Cannabis Regulatory Commission must have their rules and regulations published. These include security measures, fraud, employment, location, and distance from various other businesses or locations such as schools, neighborhoods, hospitals, etc. 

However, more than half of New Jersey’s towns are opting out of the state’s legal recreational cannabis program. Some officials say the legalization of cannabis will adversely affect children and their development. Others say they are taking a ‘wait and see’ method. They want to see how other cities and towns fare with cannabis businesses before deciding to jump in themselves. By waiting, this could mean a loss of up to two percent in tax revenue and licensing fees for various businesses, which could lead to thousands in revenue for local communities.

As many as 240 towns in New Jersey, who identify as the League of Municipalities, say their ban is simple. Since the Cannabis Regulatory Commission hasn’t released their rules and regulations yet, cities don’t want to assume what will and won’t be allowed. At any time, towns that opt out of the state’s recreational cannabis program can opt in. When the commission creates their own rules and towns have a chance to examine them, then they can fully decide if they would like to join in the legal cannabis market or not.

Specific Towns

Some towns and cities who seemed set to allow cannabis sales and move forward with licencing and zoning have flipped on their decisions. For example, Northfield, New Jersey had originally voted to allow cannabis sales in the town in a 5-2 vote back in June. August 10 saw a different result. In a 3-3 tie with one councilman abstaining, Mayor Erland Chau broke the tie, voting to ban cannabis dispensaries. 

Paterson, New Jersey’s city council voted 8-0 on August 6 to remove themselves from the state’s cannabis program, opposite to the mayor’s plan. Under Mayor Andre Sayegh’s plan, as many as 36 businesses would open to cultivate, manufacture, sell and deliver cannabis.

“I think the whole city is going to smell like marijuana,” said Councilman Shahin Khalique. They have opposed the mayor’s cannabis business plan since the mayor proposed it. 

Finally, Mayor Michael Wildes of Englewood, New Jersey vetoed the city council’s decision to ban cannabis businesses on August 7. 

“I think it is ridiculous given the circumstances of this. Both Teaneck and Fort Lee have approved the sale in some capacity,” Mayor Wildes said. “I think that it would be foolish not to monetize something that will be in the city… there will be generations to come that will judge us for missing the opportunity to put money from this in the treasure chest.”

Future

There are approximately 60 cities in New Jersey that are opting into the state’s cannabis program. Instead of waiting for the Cannabis Regulatory Commission to release their own rules, they are writing their own. That way they can start issuing licenses and allow businesses to begin operation. Once the commission releases their rules, these cities will combine their rules into a comprehensive set for their individual areas. 

Within the next year, it is predicted many cities and towns who opted out of the program will opt in. But only time will tell.

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