Governor Phil Murphy Signs Cannabis Legalization into Law

On December 17, 2020, the New Jersey Assembly and Senate voted in favor of legislation that allows regulating and launching an adult-use marijuana market for 2021, making it one of the largest markets on the East Coast. Projections of sales will approach $1 billion in a few years.

On Monday, February 22, 2021, New Jersey Governor Phil Murphy signed three bills into law regarding cannabis legalization.

Governor Phil Murphy declined to explain why he delayed the process but stated that he wants to be sure young people would not get “tangled up in our criminal justice system”.

New Jersey Governor signed three bills into law: A21, A1897, S3454.

A21 is known as the “New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act”, which legalizes personal use cannabis for certain adults, subject to State regulation; decriminalizes small amount marijuana and hashish possession; removes marijuana as Schedule I drug.

A1897 provides for certain criminal and civil justice reforms, particularly addressing legal consequences associated with certain marijuana and hashish offenses as well as raising awareness of available expungement relief.

S3254 clarifies penalties for marijuana and cannabis possession and consumption for individuals younger than 21 years old.

Currently, New Jersey has issued 12 vertical marijuana business licenses, of which only 10 are in operation.

New Jersey state lawmakers approved the expansion of a mix of 24 additional MMJ licenses.

According to the bill published in December, here’s what we are expecting for business licenses:

• The 12 existing licensed medical marijuana operators would be permitted to get an adult-use license.
• Cultivation licenses would be limited at 37 for the initial 24 months.
• The Cannabis Regulatory Commission will determine the maximum number of licenses based on market demand.
• 30% of the licenses are designated to businesses owned by women, minorities or disabled veterans.
• Priorities are given to those based on “impact zones,” or municipalities negatively impacted by unemployment, poverty or past marijuana enforcement activity.
• Adult-use sales would be taxed at 7%; however, municipalities could charge local sales taxes of up to 2%.

Read more about A21.