How To Open A Dispensary In New Jersey
Are you wondering how to open a cannabis dispensary in New Jersey? This page is dedicated to keeping you up to date on the latest news and information relevant to opening a cannabis business in New Jersey. This includes helpful insights on what is to come next for the state.
On November 3rd, 2020, New Jersey votes to legalize recreational marijuana. If the vote goes successfully, we find it extremely likely that New Jersey will legalize recreational marijuana in 2020 – 2021. There are a few factors why New Jersey could even be the next state to do so.
- In a most recent survey, 61% of New Jersey residents were in favor of legalization.
- Governor Phil Murphy is very pro-legalization calling it an “incredibly smart thing to do” and a “no-brainer” earlier this year.
- New Jersey has been hit particularly hard by cov-id plummeting tax revenue and increasing costs associated at the same time. Even before cov-id, there were state tax revenue issues. These challenges will put even more pressure on the state to find ways to gain more tax revenue. NJ Marijuana legalization could provide hundreds of millions in tax revenue.
- Criminal justice reform has never been more popular. This puts even more pressure on the state to legalize than ever before.
This effort for full legalization is preceded by the Jake Honig Compassionate Use Medical Cannabis Act which New Jersey Governor Phil Murphy signed into law in July of 2019. The bill intended to create affordable and accessible cannabis medical treatment for those that need it most. This includes:
- Allowing physician assistants and advanced practicing nurses to prescribe patients marijuana
- Authorize patients to be treated for up to 1 year
- Employer protections
And as if pertains to New Jersey Dispensaries:
- Home Delivery – approves adoption of regulations to allow dispensaries to deliver to patients
- Price Lists – Requires dispensaries to have a price list of all their medical marijuana products listed on their website. They will not be able to deviate from that pricing listed and are not allowed to change pricing more than once per month.
- Cannabis Regulatory Commission – This establishes a regulatory commission in but not of the New Jersey Department of Treasury responsible for the medical marijuana program.
The Opportunity Size
Marijuana Business Daily projects the recreational market in New Jersey to be at 1.2-1.5 billion by 2023. This would make New Jersey one of the largest cannabis markets in the country. With 9 million residents, millions of visitors, higher income, it’s evident this will be a hot market to start a cannabis business.
The impact on the actual state for recreational would be huge and is predicted to bring in an estimated $300 million in tax revenue annually. To give some perspective, this would be more than double what the state of Colorado gets in tax revenue for its state.
Local Cannabis Restrictions & Laws
While there is a push for Cannabis to legalize medically and recreationally across New Jersey, there are particular local municipalities where they have determined to outright ban or restrict marijuana in anticipation of legalization. This means you might find it a challenge to set up recreational or medical cannabis businesses here. Currently, 60 municipalities have banned marijuana. You can see a list of these towns here
Medical Marijuana has come a long way in New Jersey. In 2010 Compassionate Use Medical Marijuana Act which allowed medical cannabis use for individuals with particular conditions including cancer, glaucoma, MS, HIV/AIDS, seizure disorder, Lou Gerhig’s disease, severe muscle spasms, muscular dystrophy, inflammatory bowel disease, Crohn’s, and any terminal illness where the patient has a year or less. Eventually, in 2016 through 2017, post-traumatic disorder, migraines, Tourette’s, autism-related anxiety, Alzheimer’s related anxiety, chronic pain in particular circumstances were added to the list for use.
Since it’s inception, the program has grown rapidly to 77,000 patients in New Jersey. As of August 27th 2019, No new license applications for medicinal marijuana are being accepted at this time. Attention appears to be shifting in New Jersey to full legalization.
However, here’s the current information on the requirements to start a Medicinal Marijuana Business in New Jersey.
In NJ, licenses are granted to what are called “Alternative Treatment Centers” which are defined as businesses that:
- and/or dispense medicinal marijuana and related paraphernalia to qualifying patients in according with the Compassionate Use Medical Marijuana Act
The applicant of the Alternative Treatment Center (or “ATC” for short) is required to make two payments with the application. One $2000 and another $18,000. The 18,000 payment can be canceled upon denial of license.
Recreational Use Legalization
As stated above, New Jersey plans on putting a referendum on the ballot for November 2020 to decide on recreational marijuana legalization. Due to what has been an unprecedented year for New Jersey many new events are unfolding that will affect when and what recreational legalization will look like. By adding yourself to our New Jersey Cannabis Mailing List (below), we will keep you updated on how to open a dispensary in New Jersey and all relevant NJ news that matters, not so easy to find news, and comments based on New Jersey Legalization below.
This includes but is not limited to
- When will new cannabis license applications be available?
- How much will it cost to open a dispensary in New Jersey?
- What are the requirements to open a dispensary in New Jersey?
- What special programs will be available?
- And more
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