New Jersey
Equity Project State Briefing
Legal Status
Is Cannabis Legal in New Jersey?
- Adult-Use:
Yes
- Medical:
Yes
Cannabis in New Jersey is legal for both medical use and adult use.
Date of Legalization
- Adult-Use:
2021
- Medical:
2010
On January 18, 2010, outgoing New Jersey governor Jon Corzine signed S. 119, the Compassionate Use Medical Marijuana Act, permitting the use of medical cannabis for persons with certain severe chronic illness. On November 3, 2020, New Jersey voters approved New Jersey Public Question 1, an amendment to the state constitution to legalize the adult use of cannabis by people ages 21starting January 1, 2021.
Source:
New Jersey Statutes § 24:6I. Sections 1-56
New Jersey Administrative Code § 17:30-1.1 - 17:30-17.9.
Heininger, Claire (January 18, 2010). NJ.com "N.J. medical marijuana law is signed by Gov. Corzine". Retrieved January 8, 2022
De Avila, Joseph; Berger, Paul (November 3, 2020). The Wall Street Journal "Ballot Measure to Legalize Marijuana Passes in New Jersey". Retrieved January 8, 2022
Possession Limits
Within New Jersey’s Adult use framework adults 21+ may legally possess up to one ounce of usable cannabis or its equivalent cannabis product in solid, liquid, or concentrate form, or 5 grams of resin. However possession of up to six ounces of cannabis or 17 grams of hashish is decriminalized and not subject to criminal prosecution. Adults are not allowed to cultivate their own homegrown cannabis. Within the medical framework, patients may be dispensed up to three ounces within a 30-day period. Medical patients are not allowed to cultivate their own homegrown cannabis.
Source:
N.J. Stat. § 2C:35-10a. Personal use of cannabis items
N.J. Stat. § 2C:35-10. Subsection 4(b)
N.J. Stat. § 2C:35-23.1. Prosecutor shall not pursue certain charges
N.J. Stat. § 24:6I-10. Subdivision F (medical)
Other Licensing Provisions
License Caps
- License Caps:
Yes, Limited
New Jersey’s adult use law permits but does not require the commission to impose licensing cap, with the exception of cultivators. Within New Jersey there will be a limit of 37 cultivator licenses awarded during the 24 month period after Feb 22, 2021. For all the other license types, including retail licenses, the commission will accept new license applications and issue additional licenses, as it deems necessary to: (1) meet the market demands of the State and (2) discourage purchases from the unregulated market. The Commission is permitted to but not required to put caps on the amount of licenses it distributes in each license type. Microbusinesses will not count towards any limitation on the number of cannabis business licenses issued by the Commission.
Application Selection Process
- Selection System:
Qualified Lottery
New Jersey has a qualified lottery award system used to distribute adult use licenses. Licenses will be scored and those with the highest amount of points will receive licenses. However, when the number of applicants with the same number of points in a cannabis business license class or group is greater than the remaining number of licenses available from the Commission, the Commission may conduct a public lottery among the eligible license applicants in such class or group. All applications for the license class(es) or group(s) to be included in the lottery shall be reviewed and scored prior to the lottery.
Felony Disqualification on Ownership
- Ownership Exclusion for Felony Convictions:
Yes
- Exemption for Cannabis Offenses:
Yes
Within New Jersey’s cannabis adult use framework, all license owners and employees must undergo a criminal history background check. An individual is prohibited from owning or working within the cannabis adult use sector if they have a “disqualifying conviction” unless they present clear and convincing evidence of rehabilitation.
Disqualifying convictions are convictions within the past 5 years that are substantially related to the qualifications, functions, or duties for which the license is required. The law specifies certain criminal statutes which are automatically considered substantially related. The only controlled substances offenses specifically named are in relation to distribution to a minor and counterfeit drugs. Cannabis convictions not explicitly named as a disqualifying conviction.
Source:
N.J. Admin. Code § 17:30-8.1. Subsection (c)(2)
N.J. Admin. Code § 17:30-7.12. Subsections (c-e)
Employee Criminal Records
- Conviction Restrictions for Employees:
Yes
- Exemption for Cannabis Offenses:
Yes
Within New Jersey’s cannabis adult use framework, all license owners and employees must undergo a criminal history background check. An individual is prohibited from owning or working within the cannabis adult use sector if they have a “disqualifying conviction” unless they present clear and convincing evidence of rehabilitation.
Disqualifying convictions are convictions within the past 5 years that are substantially related to the qualifications, functions, or duties for which the license is required. The law specifies certain criminal statutes which are automatically considered substantially related. The only controlled substances offenses specifically named are in relation to distribution to a minor and counterfeit drugs. Cannabis convictions not explicitly named as a disqualifying conviction.
Source:
N.J. Admin. Code § 17:30-8.1. Subsection (c)(2)
N.J. Admin. Code § 17:30-7.12. Subsections (c-e)
Availability of Expungements
- Expungements:
Yes, Not Automatic
New Jersey offers record cleaning remedies for certain cannabis convictions, however this process is not automatic and requires action from the individual. Most minor marijuana-related offenses involving one ounce or less can be expunged immediately, though that wait time can increase to three years for more serious offenses such as distribution of more than one ounce of marijuana.
Social Equity
Social Equity Definition / Criteria
Within New Jersey’s adult use framework “Social equity business” means a license applicant or license holder that meets one of the following criteria:
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Social Equity Provisions
In New Jersey, the office of cannabis management will conduct advertising and promotional campaigns, and disseminate information to the public, to increase awareness for participation in the medical cannabis and personal use cannabis industries by persons from socially and economically disadvantaged communities. The office will sponsor seminars and informational programs, and will provide information on the commission’s Internet website, providing practical information concerning the medical cannabis and personal use cannabis industries, including information on business management, marketing, and other related matters. Priority in licensing will be given to Social equity businesses, diversely owned businesses, and impact zone businesses. Microbusiness applications, which receive a 50% discount on relevant fees, will have priority standard business type applications.
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License Priorities and Set Asides
The following prioritizations will take place when scoring applications and distributing New Jersey’s adult use cannabis licenses:
Additionally, New Jersey has a goal of distributing no less than 30% of the total number of adult use licenses to minority, women’s, and disabled veterans’ businesses.
Source:
Fee Waivers and Reductions
New Jersey has not yet defined it’s fee waivers and reductions that may be available to social equity applicants. However micro businesses are given a 50 percent discount on licensing and application fees.
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Other Financial Support for Social Equity Applicants and Licensees
New Jersey has not yet specified how much money will be used to support its social equity cannabis licensing program, nor whether the funds will be made available at the start of adult use sales. However the state imposes a “social equity excise fee” on cultivators which will be deposited in the “Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund” and used to support various social equity activities including cannabis licensing support, grants to community based nonprofits and local jurisdictions.
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