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Cannabis in New Jersey

Residents of New Jersey voted to legalize recreational marijuana on November 3, 2020, and the law went into effect on January 1, 2021. Governor Murphy signed legislation to stop possession arrests and to license retail sales on February 22, 2021, and retail sales began on April 21, 2022. New Jersey legalized medical cannabis in 2010 and expanded its Medical Marijuana Program to include additional qualifying conditions in 2019.

Overview of Key New Jersey Cannabis Laws

Is medical cannabis allowed? Yes

Is adult-use cannabis allowed? Yes

Personal Laws

Adults over the age 21 in New Jersey can possess up to 6 oz. of marijuana without incurring fines or incarceration. The law states that possession of up to 1 oz. of cannabis is legal for persons over the age of 21. All legal medical cannabis purchases must be made from licensed medical dispensaries (referred to as Alternative Treatment Centers or ATCs).

Personal Possession

Registered Medical Marijuana Patient Possession: Up to 3 oz. per month

Non-New Jersey Resident Purchases and Possession: Out-of-state patients with state-issued medical cannabis cards may bring their marijuana into New Jersey for up to six months, but they may not purchase it in New Jersey’s licensed dispensaries.

Adult-Use Possession: Residents may purchase and possess up to 1 oz. of cannabis and cannabis products. Dispensaries are only allowed to sell up to the equivalent of 1 oz. of cannabis, which means possession may include up to 1 oz . of dried flower or 5 grams of concentrates, resins, or oils or 1000mg of ingestible products (10 100mg packages) like gummies. Products can be combined to reach the 1 oz. limit. For example, a purchase of a combination of products may include 1/2 oz. of dried flower plus 2 1/2 grams of concentrate, or 5 packages of gummies and 1/2 ounce of dried flower.

Legally allowable product categories include dried flower, concentrated oils, resin, vape formulas, tinctures, lozenges, and soft chews, but availability will vary by dispensary. Perishable edibles like cookies and brownies are not available for purchase from any dispensary.

Personal Growing

Personal growing is not allowed in New Jersey.

Registered Medical Patient Growing: None

Adult-Use Growing: None

Medical Cannabis Patient Qualification and Registry

Patients in New Jersey must be diagnosed by a health care practitioner registered with the state’s Medical Marijuana Program and maintain a bona fide relationship with that practitioner. A bona fide relationship is defined by the state as, “a relationship in which the physician has ongoing responsibility for the assessment, care, and treatment of a patient’s debilitating medical condition, where:

  • 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.”

Each patient may select a caregiver, but caregivers may only service one patient at a time.

Qualifying medical conditions include:

  • Amyotrophic lateral sclerosis
  • Anxiety
  • Cancer
  • Chronic Pain
  • Dysmenorrhea
  • Glaucoma
  • Inflammatory bowel disease, including Crohn’s disease
  • Intractable skeletal spasticity
  • Migraine
  • Multiple sclerosis
  • Muscular dystrophy
  • Opioid Use Disorder
  • Positive status for Human Immunodeficiency Virus (HIV) and Acquired Deficiency Syndrome (AIDS)
  • Post-Traumatic Stress Disorder (PTSD)
  • Seizure disorder, including epilepsy
  • Terminal illness with prognosis of less than 12 months to live
  • Tourette Syndrome

Medical Marijuana Business Laws

Vertical integration is not currently allowed in New Jersey’s adult-use cannabis program, but it has been required in New Jersey’s medical cannabis program, which means an entity must hold multiple licenses across the New Jersey medical cannabis supply chain (i.e., dispensary, manufacturer, and cultivator), referred to collectively as an Alternative Treatment Center license for medical program licenses. Alternative Treatment Center licenses are distributed in three geographic areas – north, central, and south.

Medical License Types

  1. Alternative Treatment Center License

Medical License Fees

Alternative Treatment Center: $3,000 application fee and an $18,000 registration fee

Adult-Use License Types

  • Class 1 Cannabis Cultivator
  • Class 2 Cannabis Manufacturer
  • Class 3 Cannabis Wholesaler
  • Class 4 Cannabis Distributor
  • Class 5 Cannabis Retailer
  • Class 6 Cannabis Delivery
  • Conditional Licenses
  • Microbusiness
  • Testing Lab

Adult-Use License Fees

Class 1 Cannabis Cultivator: $400 application fee and license fee as follows: Tier I = $5,000 (mature cannabis plant grow canopy area greater than 2,500 sq ft but no more than 10,000 sq ft), Tier II = $10,000 (mature cannabis plant grow canopy area greater than 10,000 sq ft but no more than 25,000 sq ft), Tier III = $20,000 (mature cannabis plant grow canopy area greater than 25,000 sq ft but no more than 50,000 sq ft), Tier IV = $30,000 (mature cannabis plant grow canopy area greater than 50,000 sq ft but no more than 75,000 sq ft), Tier V = $40,000 (mature cannabis plant grow canopy area greater than 75,000 sq ft but no more than 100,000 sq ft), Tier VI = $50,000 (mature cannabis plant grow canopy area greater than 50,000 sq ft but no more than 150,000 sq ft)

Class 2 Cannabis Manufacturer: $400 application fee and license fee as follows: Up to 10,000 sq. ft. = $20,000, More than 10,000 sq. ft. = $30,000

Class 3 Cannabis Wholesaler: Not available yet.

Class 4 Cannabis Distributor: Not available yet.

Class 5 Cannabis Retailer: $400 application fee and $10,000 license fee

Class 6 Cannabis Delivery: Not available yet.

Conditional Licenses: $200 application fee

Microbusiness: $100 application fee for conditional license and $200 for annual license. $1,000 license fee for a cultivator, manufacturer, or retailer license. $4,000 license fee for a testing lab license.

Testing Lab: $400 application fee and $2,000 for the license fee in the first year, $4,000 in subsequent years.

License Timeline

The state is currently accepting license applications for adult-use Class 1 Cultivator, Class 2 Manufacturing, Class  Retailers, and Testing Laboratories. License applications will be accepted on a rolling basis until announced otherwise. There is no limit on the number of cannabis business licenses available statewide, but the number of Class 1 Cultivators will be held to 37 licenses until February 22, 2023.

The state is not currently accepting license applications for Alternative Treatment Center licenses. Existing ATCs were given the opportunity to transition to adult-use dispensaries as long as they could continue to provide enough supply to meet medical patient demand.

Testing

Testing licenses are being accepted and awarded currently.

Training

New Jersey does not require specific training for license holders or employees.

Learn More about Cannabis in New Jersey and How to Work or Start a Business in the New Jersey Cannabis Industry

Leafy Green Agency offers a variety of certification seminars for people who want to start businesses, find jobs, get promotions, or invest in the cannabis industry in New Jersey and across the country. Follow the link to register for an upcoming seminar.

Sources and More Information

Data current as of 4/28/22.