10 months after New Jersey voters approved recreational cannabis legalization, New Jersey regulators approved their initial round of rules. 160 pages of new regulation rules became formally filed with the Office of Administrative law on Thursday, August 19. The New Jersey Cannabis Regulatory Commission (NJCRC) made sure the rules they established would focus on equity and safety. 

“We knew that we had a Herculean task before us because, when we started this agency, there was nothing to begin with,” said Dianna Houenou. She is the current chair of NJCRC. Additionally, she thanked stakeholders who commented throughout the rulemaking process because the input helped them understand the work they did and to do it right the first time.  

Rules

Here’s a list of the basic rules set by the NJCRC:

• Adults 21 and over can purchase and possess up to one ounce of recreational cannabis
  • Home cultivation remains illegal at this time
• There are six general licensing categories: cultivation, manufacturing, wholesale, retailer, distributor, and delivery services
• Municipalities can ban sales but not the delivery of recreational cannabis
• Licensing decisions will be made based on market demands
  • Regulators will prioritize microbusinesses and conditional licenses along with social equity applications 
• No licensing limits will be placed, except for cultivators 
  • There will be a max of 37 cultivators until February 22, 2023 when the provision expires
• Existing medical cannabis dispensaries can apply for municipal approval for selling recreational cannabis
  • These dispensaries must ensure medical cannabis demands remains their priority over recreational sales
• Prior cannabis convictions can’t disqualify people from getting a cannabis business license
• License fees are purposefully low to encourage local businesses to enter the market, ranging from $500-$2,000
  • Only 20 percent of the license application fee is due on submission. The other 80 percent will be due upon application approval

Future

Advocates appear pleased with this initial set of rules from the NJCRC. “Legalization was only the first step in undoing the harms and disparities of marijuana enforcement, and it can only succeed if we maintain our focus on equity and racial justice through the process of regulation and beyond,” the New Jersey ACLU chapter’s policy director, Sarah Fajardo, said in a press release.

However, more change will come, some say. Evan Nison is a national board member for NORML, who spearheaded efforts to legalize cannabis in New Jersey. “There’s still more that needs to be worked out, such as access to capital for equity participants and permitting on-site consumption lounges, but this is a great place to start,” he said. “These rules rightly prioritize equity, safety and fairness like we were hoping for.”

New Jersey continues to take the next steps in offering social equity and fair business opportunities to citizens of the Garden State. License applications are not open yet, but regulators assure it will be soon. Additionally, sales will most likely begin in 2022.

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