Legal Guidance For Cannabis Businesses
NEW JERSEY CANNABIS AND HEMP LAW
The first part of this page will address recreational use and Part II will address medicinal use.
The legalization of marijuana in New Jersey presents both new opportunities and great challenges. Businesses, entrepreneurs, investors, and individuals looking to enter the emerging marijuana industry need experienced legal counsel to assist them in navigating the complex regulatory and legal issues at the state level, while being mindful of federal level limitations.
CURRENT STATUS OF RECREATIONAL USE OF MARIJUANA LAW AS OF JAN 1, 2020
Recreational, or adult-use, cannabis will become legal for adults 21 and older on January 1, 2021, as a result of voters approving Public Question 1 on November 3, 2020. The new legislation doesn’t specify what amount of cannabis is legal. Unless and until it does, possession of 50 grams of cannabis or less is punishable by six months in jail and a fine of up to $1,000. UPDATE--Two-thirds of New Jersey voters supported the authorization of recreational marijuana use, and the win gained significant traction on social media. The passage of the amendment, which goes into effect on Jan 1, 2021, made New Jersey one of 12 states where recreational marijuana use is legal. New Jersey residents voted through a constitutional amendment to legalize marijuana, but finalizing legislation has been hit with delays. The promise to officially legalize marijuana in 2021 may not happen. Gov. Phil Murphy is not satisfied with the decriminalization bill the Legislature sent him earlier this month. “There is some important, I want to say, technical, but important things we’re trying to wrinkle out,”
The new legislation doesn’t specify what amount of cannabis is legal. Unless and until it does, possession of 50 grams of cannabis or less is punishable by six months in jail and a fine of up to $1,000.
Complete Legislation history
New Jersey became the 14th US state to legalize marijuana for medical use when the Legislature passed the New Jersey Compassionate Use Medical Marijuana Act (CUMMA), also known as S 88, in January 2010. It was signed into law by Gov. Jon Corzine on January 18, 2010, but abruptly stalled when Gov. Chris Christie took office the next day. New Jersey’s medical marijuana patient registry reopened on August 9, 2012, and began allowing registered physicians to initiate patient certifications with the Medical Marijuana Program (MMP).
S 2842, allowing edible forms of marijuana to be consumed by patients younger than 18, was signed into law by Gov. Christie on September 10, 2013.
On June 2, 2019, Gov. Phil Murphy signed A 20, also known as Jake’s Law, named for Jake Honig, a pediatric patient who used medical marijuana while battling cancer. The bill made sweeping changes to New Jersey medical cannabis laws, adding provisions for home delivery, increasing the allowed amount of cannabis, and expanding access with more cultivators, retailers, and manufacturers.
The Marijuana Legalization Amendment was approved by voters in New Jersey on November 3, 2020. Also referred to as New Jersey Public Question 1, the state constitutional amendment legalized the possession and use of marijuana for residents 21 and older. It also specified that the New Jersey state sales tax rate of 6.625% would apply to purchases of recreational cannabis with local municipalities only permitted to impose an additional 2% tax.
OTHER RESOURCES:
Detailed Counsel for Cannabis Industry Clients Including Operators, Retailers, Growers, Cultivators, Processors, and Distributors
Our clients can include medical marijuana operators in New Jersey; adult-use operators from other states; businesses and entrepreneurs seeking to enter various sectors of the cannabis/CBD /hemp market; ancillary service providers; and employers and individuals impacted by the effect of cannabis use. In addition, we represent health care professionals, patients, medical practices and other entities regarding compliance with New Jersey’s medical marijuana laws.
We can assist established operators in the cannabis industry, as well as guide companies and entrepreneurs seeking to enter the industry through the licensing application process.
Our Cannabis & Hemp Law practice group provides counsel for every step of forming and operating a cannabis business or ancillary service provider, including:
- Corporate Formation and Financing
- Licensing and Permitting for retailers, growers, cultivators, processors, and distributors
- Regulatory Compliance
- Real Estate
- Commercial Real Estate, Land Use and Zoning
- Health Care
- Business Litigation
- Products Liability
- Labor & Employment
- Intellectual Property
- Insurance Recovery and Liability
- Risk Management
There are numerous complexities related to medical and adult cannabis use that impact cannabis business stakeholders, including:
- Selecting appropriate real estate locations
- Municipal zoning and land use issues
- Navigating various regulations related to obtaining cannabis or hemp licenses
- Mitigating risk
- Protecting intellectual property
- Adapting to changing legalization laws and regulations
We also can work with ancillary businesses within the cannabis industry that require legal guidance to ensure regulatory compliance on issues related to employment policies and product safety.
- We can represent marijuana operator in obtaining local approval to establish satellite medical marijuana dispensary in New Jersey
- We can advised alternative treatment centers in New Jersey on a variety of regulatory matters
- We can advise retailers of CBD products on regulatory compliance and advertising requirements
- We can advise medical cannabis cultivator on NJ medical cannabis laws and pending adult-use cannabis legislation
- We can advise existing recreational and medical cannabis dispensaries and cultivators on NJ medical cannabis laws and pending adult-use cannabis legislation
- We can advise existing cannabis testing laboratory in connection with the establishment of cannabis testing laboratory in New Jersey
- We can negotiate a license agreement between extraction company and alternative treatment center
- We can represent owner of a condo against charges from condo association that your use of medical marijuana in your condo violated condo association rules
- We can advise health care professionals and entities relating to the authorization of medical cannabis and patient policies
PART II MEDICAL MARIJUANA IN NEW JERSEY
New Jersey became the 14th state to allow medical marijuana when the New Jersey Compassionate Use Medical Marijuana Act (N.J.S.A. 24:6I-1 et seq.) was passed by the state legislature on January 11, 2010 and was signed into law by Governor Jon Corzine on January 18, 2010. Implementation of the Compassionate Use Medical Marijuana Act was stalled slightly when New Jersey Governor Chris Christie, a staunch anti-marijuana advocate, took office on January 19, 2010.New Jersey’s medical marijuana patient registry finally opened on August 09, 2012 and allowed registered physicians to initiate patient certification with the Medical Marijuana Program. Qualified patients can possess up to 2 ounces of medical marijuana within a 30 day period. New Jersey’s first Alternative Treatment Center, Greenleaf Compassion Center, began dispensing medical marijuana to qualified patients on December 06, 2012.
Under the New Jersey Compassionate Use Medical Marijuana Act, medical marijuana must be ordered by a registered physician from one of the Alternative Treatment Centers approved by the New Jersey Department of Health. New Jersey medical marijuana patients cannot grow their own marijuana plants. In order for a physician to register with the Medical Marijuana Program, they must hold an active New Jersey license that is in good standing, possess an active controlled dangerous substances registration that is not subject to limitation, and practice within the State of New Jersey.
TABLE OF CONTENTS
- New Jersey Medical Marijuana Statistics And Facts
- The Medical Marijuana Program
- Medical Marijuana Dispensaries In New Jersey
- Cultivation and Possession of Medical Marijuana in New Jersey
- The New Jersey Compassionate Use Medical Marijuana Act
- New Jersey Recreational Marijuana Laws
- New Jersey Marijuana News
NEW JERSEY MEDICAL MARIJUANA STATISTICS AND FACTS
- For fiscal year 2016, the total budget for New Jersey’s Medical Marijuana Program was $2,046,730.
- In 2015, total revenue generated from issuing patient and caregiver ID cards and Alternative Treatment Center permits was $243,093.
- Approximately 48% of registered patients and caregivers qualified for and received the reduced application fee ($20 for patients on government assistance) in 2015.
- As of 2015, there were 362 active registered physicians in New Jersey’s Medical Marijuana Program.
- In December 2015, New Jersey’s 5 Alternative Treatment Centers conducted a total of 2,483 transactions.
- New Jersey medical marijuana caregivers can only have one qualifying patient at a time.
- The price of medicinal marijuana dispensed by New Jersey’s Alternative Treatment Centers ranges from $425 to $520 per ounce, with an average price of $489.
THE MEDICAL MARIJUANA PROGRAM
The New Jersey Compassionate Use Medical Marijuana Act required the Department of Health to create the Medical Marijuana Program to register medical marijuana physicians, patients, and caregivers, and to issue permits to Alternative Treatment Centers. Participation in the Medical Marijuana Program is mandatory to receive the protections afforded by the Compassionate Use Medical Marijuana Act. Participants can register for the Medical Marijuana Program online at http://nj.gov/health/medicalmarijuana.
HOW TO QUALIFY FOR MEDICAL MARIJUANA IN NEW JERSEY
- You must have and maintain a bona fide physician-patient relationship with a physician who is registered with the Medical Marijuana Program. A bona fide physician-patient relationship is defined as a relationship in which the physician has ongoing responsibility for the assessment, care, and treatment of a patient’s debilitating medical condition whereby:
- The physician-patient relationship has existed for at least one year; or
- The physician has seen and/or assessed the patient for the debilitating medical condition on at least four visits; or
- The physician assumes responsibility for providing management and care of the patient’s debilitating medical condition after conducting a comprehensive medical history and physical examination, including a personal review of the patient’s medical record maintained by other treating physicians reflecting the patient’s reaction and response to conventional medical therapies.
- Your physician must have certified that you have an approved debilitating medical condition. Approved debilitating medical conditions include:
- Amyotrophic lateral sclerosis
- Anxiety
- Multiple sclerosis
- Terminal cancer
- Muscular dystrophy
- Inflammatory bowel disease, including Crohn’s disease
- Post-Traumatic Stress Disorder (PTSD)
- Terminal illness, if the physician has determined a prognosis of less than 12 months of life
- The following conditions apply, if resistant to, or if the patient is intolerant to, conventional therapy:
– Seizure disorder, including epilepsy
– Intractable skeletal muscular spasticity
– Glaucoma
- The following conditions apply, if severe or chronic pain, severe nausea or vomiting, cachexia or wasting syndrome results from the condition or treatment thereof:
– Positive status for human immunodeficiency virus
– Acquired immune deficiency syndrome
– Cancer
HOW TO APPLY FOR A MEDICAL MARIJUANA ID CARD IN NEW JERSEY
- A registered physician must complete and submit their patient’s Attending Physician Statement to the Medical Marijuana Program, which will return a Patient Reference Number and Patient Registry ID to the physician. The physician can then register their patient electronically at https://njmmp.nj.gov.
- Once the patient has their Patient Reference Number and a copy of their Attending Physician Statement, they will go to https://njmmp.nj.gov and follow the instructions to register online.
- Participants in the Medical Marijuana Program are required to choose their Alternative Treatment Center at the time of registration, but are allowed to switch ATCs at any time and at no cost.
- The following documents are required to register online with New Jersey’s Medical Marijuana Program:
- The reference number that was provided to you by your registered physician (this number may be found on your copy of the attending physician statement)
- An email address (Customer Service provides all patients up to date with information through email)
- A scanned passport-style photograph of you against a white solid background (no glasses or hats are permissible, the photo must be a JPEG, and the face must take up 70% of the photo’s space)
- A scanned copy of a government issued photo ID, which can be:
– A current New Jersey digital license
– A current New Jersey digital non-driver ID card
– A New Jersey County ID Card
- Scanned proof of New Jersey residency (P.O. Boxes are not accepted), which can be:
– A utility bill issued in the past 90 days that shows your name at your current address (acceptable utility bills include gas, electric, water, sewer, phone, cell phone, cable, television, and internet)
– Any correspondence from the IRS or the New Jersey State Tax Office within the last year
- Proof of government assistance (if applicable), which can be one of the following:
– Proof of participation in the New Jersey Medicaid Program
– Proof of participation in the Food Stamp/SNAP Program
– Proof of New Jersey Temporary Disability Insurance benefits
– Proof of Supplemental Security Income (SSI) benefits
– Proof of Social Security Disability (SSD) benefits
- The registration fee for a Medical Marijuana Program ID Card is $200 (which is reduced to $20 with proof of government assistance) for both patients and caregivers
- A minor patient may qualify for the reduced $20 registration fee under their legal guardian/caregiver’s government assistance eligibility
- To sign up as a caregiver, you must additionally make an appointment to get fingerprinted for a criminal background check
- The Medical Marijuana Program ID Card registration is valid for 2 years
CONTACT THE MEDICAL MARIJUANA PROGRAM
New Jersey Department of Health Medical Marijuana Program
Telephone:(609) 292-0424
Website: http://www.nj.gov/health/medicalmarijuana
Customer Service Unite Email: medical.marijuana@doh.nj.gov
Online Contact Form: http://nj.gov/health/medicalmarijuana/contact.shtml
MEDICAL MARIJUANA DISPENSARIES IN NEW JERSEY
The New Jersey Compassionate Use Medical Marijuana Act required the Department of Health to create the Medical Marijuana Program, which licenses and regulates medical marijuana dispensaries, known as Alternative Treatment Centers (ATCs), for the cultivation and distribution of medical marijuana and related paraphernalia. The Act does not limit the number of ATCs that can be licensed in New Jersey, but suggests at least two in each region of the state—north, central, and south. The original 6 ATCs are required to be registered as non-profits, but are not required to register as 501(c)(3) organizations. The Act states that once the original 6 non-profit ATCs are open, for-profit ATCs will be allowed. Before issuing an operating permit, the Department of Health requires that ATCs provide written verification from the local government body in which the ATC will be located and evidence of compliance with local codes and ordinances.
Alternative Treatment Centers were originally limited in the number of strains that were allowed to be cultivated, but amendments to the New Jersey Compassionate Use Medical Marijuana Act removed such constraints and there are currently 68 available marijuana strains in cultivation. The Medical Marijuana Program has developed the Medicinal Marijuana Strain Library, which is available to registered patients and physicians and contains laboratory testing results of available strains cultivated by the ATCs. ATCs are not permitted to utilize pesticides and the Department of Health tests for toxic metals and mycotoxins.
CURRENTLY PERMITTED ALTERNATIVE TREATMENT CENTERS
Compassionate Care Foundation, Inc. (Operational)
100 Century Drive
Egg Harbor Twp., NJ
(609) 277-7547
Greenleaf Compassion Center (Operational)
395 Bloomfield Ave
Montclair, NJ 07042
(973) 337-5670
Garden State Dispensary (Operational)
950 U.S. Highway 1 North
Woodbridge, NJ 07095
(848) 999-2005
Breakwater Alternative Treatment Center (Operational)
2 Corporate Drive
Cranbury, NJ 08512
(732) 703-7300
Compassionate Sciences, Inc. (Operational)
111 Coolidge Avenue
Bellmawr, NJ 08031
(856) 933-8700
Foundation Harmony (Operations Pending)
Location Pending
(201) 840-5800
At this time, the state is not accepting applications to open additional Alternative Treatment Centers. On January 17, 2011, the Department of Health released a Request for Applications soliciting parties interested in establishing ATCs. On March 21, 2011, the Department of Health announced the selection of six ATC applicants to move forward in the permitting process. Once the initial six ATCs are open, the state will evaluate the program and determine whether or not there is a need for expansion. If there is a determination made to add more ATCs, the Department of Health will publicize the expansion and provide the criteria and process for application.
CULTIVATION AND POSSESSION OF MEDICAL MARIJUANA IN NEW JERSEY
Under the New Jersey Compassionate Use Medical Marijuana Act, a physician is permitted to certify no more than 2 ounces of medicinal marijuana in a 30-day period and may certify a patient for up to 90 days before a patient is required to seek reevaluation. Medicinal marijuana is certified and dispensed in increments of one eighth and one quarter of an ounce by Alternative Treatment Centers. If a physician does not specify an allowed 30-day amount, the program defaults the patient to the 2 ounce maximum. New Jersey law does not allow medical marijuana patients to grown their own marijuana plants.
The New Jersey Department of Health has provided the following guidelines for medical marijuana patients and caregivers:
- Patients and caregivers should always carry proper identification, including Medical Marijuana Program cards, at all times
- Medicinal marijuana should always be maintained in its original labeled packaging
- Patients should keep medicinal marijuana at their residence and only transport it when absolutely necessary
- If transporting or possessing medicinal marijuana outside their residence, patients and caregivers should keep the amount in their possession to a minimum
- Patients and caregivers may not grow or cultivate marijuana, or be in possession of a marijuana plant
- Patients and caregivers may not possess marijuana obtained from a source other than a New Jersey Alternative Treatment Center
- Patients and caregivers are not allowed to share or re-distribute medicinal marijuana to any other person
- Patients may not operate a motorized vehicle (of any sort), aircraft, railroad train, stationary heavy equipment or a vessel while under the influence of medicinal marijuana
- Patients and caregivers may not take medicinal marijuana across state lines
- Patients may not smoke medicinal marijuana:
- on a school bus
- on public transportation
- in a private vehicle while in motion
- on any school grounds
- at any correctional facility
- at any public park, beach, recreation center, or other place where smoking is prohibited
Where is it safe to purchase marijuana in New Jersey?
Adults 18 and older may purchase medical marijuana from Alternative Treatment Centers (ATCs), as long as patients have a physician’s recommendation. Medical patients pay 4% in sales tax though it’s set to be eliminated in July 2022. Patients and caregivers may purchase up to 3 ounces per month. Terminally ill patients and those on hospice care do not have a monthly limit.
Allowed forms include:
- Flower
- Oil
- Oral lozenges
- Topicals
The Cannabis Regulatory Commission, which oversees the state’s medical marijuana program, will decide where adult-use cannabis can be sold beginning January 1, 2021.
Many dispensaries in New Jersey offer delivery and curbside pickup services in addition to storefront sales.
Where is it safe to consume marijuana in New Jersey?
New Jersey medical marijuana patients may only consume cannabis in the privacy of their homes. Smoking medical marijuana falls under the same regulations as tobacco smoking in the Smoke-Free Air Act.
Possession and cultivation limits
Patients are allowed to possess 3 ounces (85 grams) in a 30-day period. Patients who are terminally ill or in hospice care do not have a monthly limit. New Jersey patients and caregivers are not allowed to cultivate cannabis plants.
Medical Marijuana Program
Qualified New Jersey medical marijuana patients must register with the state patient registry to obtain a valid state-issued identification card from the Department of Health (NJDOH) Medicinal Marijuana Program.
A medical marijuana card allows New Jersey patients to legally purchase marijuana from state-licensed ATCs and protects them from being charged for possession under the state’s cannabis laws. New Jersey also prohibits employers in the state from taking adverse action against medical marijuana cardholders based solely on their patient status.
Quality Control Testing
Jake’s Law calls for the Cannabis Regulatory Commission to set up testing guidelines. At a minimum, state-approved labs must test for:
- Agricultural residue
- Foreign material
- Heavy metals
- Microbes
- Pesticides
- Residual solvents
THE NEW JERSEY COMPASSIONATE USE MEDICAL MARIJUANA ACT
The New Jersey Compassionate Use Medical Marijuana Act (N.J.S.A. 24:6I-1 et seq.) was passed by the state legislature and signed by the governor in January of 2010. It allows New Jersey physicians registered with the state’s Medical Marijuana Program to recommend that qualified patients consume up to 2 ounces of medical marijuana within a 30 day period. A physician’s recommendation must be reevaluated every 30 to 90 days, depending on the physician’s selected timeframe for the medical marijuana recommendation. Some medical marijuana advocates blame the constant reevaluation requirement for the Medical Marijuana Program’s relatively low participation rate (as of March 2016, only 6,960 patients and 631 caregivers had registered with the program).
Read the Full Text of the New Jersey Compassionate Use Medical Marijuana Act
NEW JERSEY RECREATIONAL MARIJUANA LAWS
The following information is for the non-medical/recreational use of marijuana. Refer to NEW JERSEY MEDICAL MARIJUANA LAWS for information about medical marijuana laws in New Jersey.
PENALTIES AND FINES
| Offense |
Penalty |
Incarceration |
Max. Fine |
| Possession |
| Personal Use |
| 50 g or less |
Disorderly Persons Offense |
6 months |
$ 1,000 |
| More than 50 g |
4th Degree Crime |
1.5 years |
$ 25,000 |
| Possession within 1,000 feet of a school adds 100 hours of community service and an increased fine. A marijuana possession conviction can cause a driver’s license suspension for up to 24 months. |
| Sale |
| Less than 1 oz |
4th Degree Crime |
18 months |
$ 25,000 |
| 1 oz – less than 5 lbs |
3rd Degree Crime |
3* – 5 years |
$ 25,000 |
| 5 – less than 25 lbs |
2nd Degree Crime |
5* – 10 years |
$ 150,000 |
| 25 lbs or more |
1st Degree Crime |
10* – 20 years |
$ 300,000 |
| Within 1000 feet of a school or school bus |
3rd Degree Crime |
3* – 5 years |
$ 150,000 |
| * Mandatory minimum sentence Fines and sentences are doubled for sales to a minor or pregnant woman. |
| Cultivation |
| Less than 10 plants |
3rd Degree Crime |
3*-5 years |
$ 25,000 |
| 10 – 49 plants |
2nd Degree Crime |
5*-10 years |
$ 150,000 |
| 50 or more plants |
1st Degree Crime |
10*-20 years |
$ 300,000 |
| * Mandatory minimum sentence |
| Hash & Concentrates |
| Possession of 5 g or less |
Disorderly Persons Offense |
6 months |
$ 1,000 |
| Possession of more than 5 g |
4th Degree Crime |
6 months |
$ 25,000 |
| Manufacturing, distributing, dispensing, or possessing with intent of less than 5 g |
4th Degree Crime |
18 months |
$ 10,000 |
| Manufacturing, distributing, dispensing, or possessing with intent of 5 g – less than 1 lb |
3rd Degree Crime |
3* – 5 years |
$ 25,000 |
| Manufacturing, distributing, dispensing, or possessing with intent of 1 lb – less than 5 lbs |
2nd Degree Crime |
5* – 10 years |
$ 150,000 |
| Manufacturing, distributing, dispensing, or possessing with intent of 5 lbs or more |
1st Degree Crime |
10* – 20 years |
$ 300,000 |
| Within 1,000 feet of a school or school bus |
3rd Degree Crime |
3* – 5 years |
$ 150,000 |
| * Mandatory minimum sentence |
| Paraphernalia |
| Possession or use of paraphernalia |
Disorderly Persons Offense |
6 months |
$ 1,000 |
| Sale of paraphernalia |
4th Degree Crime |
18 months |
$ 10,000 |
| Miscellaneous |
| Being under the influence of marijuana or hashish is a misdemeanor punishable by up to 6 months in jail and a $1,000 fine. |
FAQ
How do you open a medical marijuana dispensary in NJ?
NJDOH is no longer accepting applications for new Alternative Treatment Center (ATC), or dispensary, locations. Check the program’s ATC website for news and calls for new applications.
How do you get a medical marijuana card in NJ?
Visit your physician to see if you have a qualifying condition. If you do, register with the MMP.
Where is medical marijuana legal in New Jersey?
Medical marijuana is legal throughout the state. Consumption is legal in private.
What are the counties where medical marijuana is legal in New Jersey?
While some towns and municipalities have banned cannabis-related businesses, medical marijuana is legal statewide.
Is pot decriminalized in NJ?
Recreational, or adult-use, cannabis will become legal for adults 21 and older on January 1, 2021, as a result of voters approving Public Question 1 on November 3, 2020. The new legislation doesn’t specify what amount of cannabis is legal. Unless and until it does, possession of 50 grams of cannabis or less is punishable by six months in jail and a fine of up to $1,000. UPDATE--Two-thirds of New Jersey voters supported the authorization of recreational marijuana use, and the win gained significant traction on social media. The passage of the amendment, which goes into effect on Jan 1, 2021, made New Jersey one of 12 states where recreational marijuana use is legal. New Jersey residents voted through a constitutional amendment to legalize marijuana, but finalizing legislation has been hit with delays. The promise to officially legalize marijuana in 2021 may not happen. Gov. Phil Murphy is not satisfied with the decriminalization bill the Legislature sent him earlier this month. “There is some important, I want to say, technical, but important things we’re trying to wrinkle out,”
According to NJ cannabusiness, 47, 564 people are charged with cannabis possession in the last year or so. These are crimes that are taking up the prisons with non-violent offenders and once the law is passed this will not be a crime anymore.
OTHER RESOURCES:
PAGLIARA LAW MARIJUANA LAW BLOG
NCIA NATIONAL CANNABIS INDUSTRY ASSOC
NJ CANNABUSINESS ASSOCIATION
CANNABIS CHAMBER
NORML
NJ MEDICAL MARIJUANA
COMPASSIONATE USE ACT NJ FULL TEXT
NJ CANNABIS BLOG
201-470-4181
