New Jersey Gives Green Light for Cannabis Sales

After years of legislation and grassroots organization, New Jersey has formally opened their state to commercial cannabis sales, joining 18 others states and the District of Colombia with legalizing their sale within state borders. This comes a week after Governor Murphy announced the state legislature has cleared the final hurdles to this endeavor.

Six of the seven currently approved medical cannabis dispensaries will be allowed to sell commercial cannabis to anyone over 21 years old, with the seventh planning to go online in the coming weeks.

"It's a huge event. It's a moment in time in American history where prohibition 2.0 is lifted," said Ben Kovler, the chairman and CEO of Green Thumb Industries, which has two facilities opening Thursday, one in Bloomfield and another in Paterson.”

State regulators say dispensaries in New Jersey are allowed to sell up to the equivalent of 1 ounce of cannabis, which means an ounce of dried flower, or 5 grams of concentrate or 1,000 milligrams of edibles, like gummies. Perishable items like cookies and brownies are not available.”(1)

New Jersey has established rules for cannabis sales and possession for those in the state. A person who is old enough to purchase cannabis is allowed to purchase one ounce at a time and have 6 ounces on their person. However, there are currently only 12 legal dispensaries, 6 that sell commercial weed and 6 that double as a medical cannabis dispensary. Those who buy weed may smoke it in their own private residence, however landlords reserve the right to keep that to a minimum or ban it outright. Smoking it in the car will be seen as a DUI. Most importantly, New Jersey joins Washington as the only state with legal cannabis sales that customers cannot grow their own, they have to be licensed to sell these products.

Uniquely, this also applies to medical cannabis. Legislative leaders, especially Senate President Nick Scutari, D-Union, have refused to budge on cannabis “home grow,” citing conversations with law enforcement officials in Colorado who said the state’s lax laws on growing cannabis led to massive illegal grow houses. But those laws changed years ago. Today, most states have a limit of six to 12 mature plants per person.(2)

“From day one, my administration has worked with our partners in the Legislature to advance social justice on behalf of the communities disproportionately impacted by marijuana prohibition by working to expunge cannabis-related convictions, decriminalize possession, and establish an equitable cannabis industry,” said Governor Phil Murphy. “The first sale of legal, adult-use cannabis today marks a historic moment for New Jersey, as we leave behind the indefensible practices that led to the incarceration of countless people of color and embrace the opportunities of a fair, regulated adult-use market. It is a moment that required long hours of work to make sure we got it right the first time, and I am proud of our efforts to get to this point. With today’s launch, my administration will continue working to grow a cannabis industry that reflects the diversity of our state, protects access for medical marijuana patients, prioritizes justice, and promotes equal opportunities for communities of color."(3)

While New Jersey and Connecticut had commercial cannabis laws in place, New York and Pennsylvania currently do not have a state level cannabis program, though New York hopes to have one in place by the end of the year. In addition, it is still banned at the federal level. Consult your states laws on the legal status of your state. At PL Risk, we can help put you in touch with the right resources for your insurance needs.