On November 3, 2020, the voters of New Jersey approved a referendum legalizing adult/recreational cannabis on January 1st. The NJ Legislature passed S21/A21 yesterday which describes the initial regulatory structure for adult use cannabis licenses, state and municipal taxes on legal marijuana and employer and employee protections in maintaining a drug free work place, among others. The bill is expected to be signed by Governor Murphy next week.
The bill does not include dates for license applications for adult use cannabis business but does explain how the licensing process will work and memorializes the commitment to preference in the award of applications to minority and women owned businesses.
The bill increases the number of cultivation licenses to 37 from 24 and establishes six classes of licensed cannabis businesses: cultivator, manufacturer, wholesaler, distributor, retailer and delivery. This creates new opportunities for those who are interested in the cannabis business but do not wish to open a dispensary or cultivation facility.
Some of the key takeaways from the bill are attached.
Capehart and Scatchard’s Cannabis Department is available to assist those who wish to apply for a license or have interest in other ways they can get involved in this new area of business in New Jersey.
Please contact Sheila M. Mints, Esq. at 856-840-4945.