New Jersey Regulators Propose Permanent Rules for Adult-Use Cannabis Industry
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New Jersey Regulators Propose Permanent Rules for Adult-Use Cannabis Industry

The Cannabis Regulatory Commission also approved 81 new conditional adult-use licenses at its June 30 meeting.

July 5, 2022

The New Jersey Cannabis Regulatory Commission (CRC) met June 30 to propose permanent rules for the state’s adult-use cannabis industry, as well as to approve 81 new conditional adult-use licenses, according to an NJBIZ report.

The proposed regulations will ultimately govern the cultivation, manufacture, wholesale, distribution, sale and delivery of adult-use cannabis in the state, the news outlet reported. The rules, which will be published in the New Jersey Register Aug. 1, expand on the initial regulations that the CRC released in August 2021.

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“Today, the Cannabis Regulatory Commission took the historic step of proposing permanent rules for New Jersey’s cannabis industry and expanding our focus on both equity and safety,” CRC Chair Dianna Houenou said, according to NJBIZ. “The regulations approved for formal proposal will create new opportunities for entrepreneurs to join this nascent industry.”

The rules proposed last week add three license types: Class 3 Cannabis Wholesalers, Class 4 Cannabis Distributors and Class 6 Cannabis Delivery Services. The regulations also provide more flexibility for microbusinesses by clarifying that areas where cannabis is not handled—such as breakrooms and bathrooms—do not count toward the 2,500-square-foot limit put in place by the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, which initially created the adult-use marketplace, NJBIZ reported.

The proposed rules would also codify New Jersey’s adult-use cannabis sales limits at 1 ounce of flower, 4 grams of extracts or concentrates, and 1,000 mg of THC in edible form, according to the news outlet.

The regulations would also require adult-use dispensaries to provide consumers with information on safe cannabis use, NJBIZ reported.

The proposed rules also codify the CRC’s licensing process, which prioritizes social equity business applications, according to the news outlet.

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“The proposed permanent rules will empower the CRC to continue our mission to make New Jersey the premier cannabis market on the East Coast,” CRC Executive Director Jeff Brown said, according to the news outlet. “They improve safety for consumers, they continue to promote equity, and they include new license types and new flexibilities that will create new opportunities for businesses in New Jersey.”

The proposed rules also tackle label requirements to help better inform consumers about the potency of THC and CBD in cannabis products, the news outlet reported. They would also allow for more flexibility on logo size and placement on adult-use cannabis packaging.

The regulations also clarify the penalties that the CRC can impose for violations, according to NJBIZ.

There will be a 60-day public comment period on the proposed rules after they are published in the state register Aug. 1. Once the public comment period closes Sept. 30, the CRC will have a Feb. 15, 2023, deadline to respond to comments, incorporate changes and adopt final regulations, NJBIZ reported.