MJBizMag January 2022 - 34

NEW JERSEY
By Omar Sacirbey
How does your Garden State grow?
Ballot initiative or legislation: New Jersey
voters approved recreational marijuana
legalization on Nov. 3, 2020, by a margin of
67%-33%. The state's Legislature passed an
implementation bill for the new measure on
Dec. 17, 2020.
Regulatory agency: Cannabis Regulatory
Commission (CRC)
Business license types: There are six
classes of licensed businesses: cultivator,
with six tiers based on size; manufacturer,
with two tiers based on size; wholesaler,
distributor, retailer and delivery.
In addition, microbusiness licenses are
available for cultivators, manufacturers/
processors and retailers. Microbusinesses
are defined as having no more than 10
employees and occupying no more than
2,500 square feet.
The application process for cultivators,
manufacturers/processors as well as
laboratory licenses opened Dec. 15, while the
application process for retailers will open
March 15. Regulators have yet to set dates
for when they will open the application
process for delivery, distribution and
wholesale licenses.
License caps: Cultivation licenses are
capped at 37 until Feb. 22, 2023. The cap
doesn't apply to cultivation microbusiness
licenses. No other license types are capped.
34 January 2022 | MJBizMagazine
Out-of-state applicants: Allowed for
the six main license types, but New Jersey
residents must hold at least 5% of the
company. Microbusiness license holders
must be New Jersey residents-defined as
having lived in the state for five consecutive
years-and locate their business in the
municipality in which they live or an
adjacent municipality.
Product types: All product types will be
available except for infused sweet and
savory edibles, such as gummies.
Anticipated sales launch: Sales appear
likely to start this spring, unless medical
marijuana operators are given a head start.
2021 estimated medical sales:
$180 million-$220 million
2021 state population and patient
numbers: With 9.4 million residents and
120,000 cardholders, MMJ patients account
for 1.27% of the state's population.
Predicted size of market: MJBizDaily
projects New Jersey's adult-use market will
generate annual sales of
$850 million-$950 million by 2024.
Local control and opt-in/opt-out rules: Past
prohibitions have been voided; municipalities
had 180 days from the bill's enactment to
prohibit adult-use operations. Municipalities
cannot ban delivery services to consumers
in their area, but they can decide how many
licensed businesses to allow.
Social equity provisions: Minorities,
women and disabled veterans are given
priority consideration for licensing. Priority
is also given to applicants living in " impact
zones, " or high-population municipalities
negatively impacted by unemployment,
poverty or marijuana-related arrests. To
the extent possible, the CRC would grant at
least 25% of all licenses to such applicants or
those who employ at least 25% of their staff
from such zones.
W
ith annual sales predicted to
approach $1 billion by 2024,
New Jersey's recreational
marijuana market is poised to become
one of the hottest in the United States,
potentially overtaking Massachusetts
as the East Coast leader. New Jersey's
dominance likely will continue until
neighboring New York's program-not
expected to launch until 2023-gets
into full swing.
" It's really going to be the hot spot of
the entire mid-Atlantic region, " said
Edmund DeVeaux, president of the
New Jersey CannaBusiness Association.
Opportunities are expected to be
plentiful for cannabis entrepreneurs,
MJBizMag January 2022

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