How To Open A Dispensary In New Jersey
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.
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. No new medical licenses have been granted. Attention appears to be shifting in New Jersey to full legalization.
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 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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