New Jersey approves 13 dispensaries to launch state's recreational cannabis market

The New Jersey Cannabis Regulatory Commission (CRC) has approved the first 13 dispensaries that will be licensed to sell adult-use cannabis in the state. Recreational sales to adults 21 and older scheduled to begin next month. The 13 dispensaries are owned by 7 vertically integrated operators, including Curaleaf, TerrAscend and Columbia Care.

Last month, the CRC expressed concern that legal supply would be unable to meet consumer demand when the legal market opened. It was also concerned about the ability of medical producers already operating in the state to open their doors to recreational sales without interrupting access for medical patients.

Today, representatives of 7 multi-state medical cannabis operators testified before the CRC about their plans to protect medical access and social equity across the state. The board's vote granted certifications to the seven companies, allowing them to expand their operations to the adult-use cannabis market in 13 of their 18 combined locations.

When will cannabis sales begin in New Jersey?

CRC President Dianna Houenou clarified that dispensaries are «not allowed to start immediately» and must wait for the Commission to grant them their official license. Each establishment must pass a final site assessment by the CRC, pay a fee of up to $1 million and receive its official license before beginning recreational sales.

No specific date has been set for the opening of recreational sales. Each of the 13 dispensaries will open as soon as they have met their licensing requirements.

Jeff Brown, CRC's Executive Director, indicated that the process could take more or less than 30 days for each dispensary, depending on how quickly they complete their assessments and pay the required fees. Once these conditions have been met, the dispensary can open to the public.

«Expanding into the adult-use market, with a very advantageous start for new applicants, is a privilege that should not be taken lightly,» said Dianna Houenou. «We expect these operators to deliver on their promises to patients and communities; and that recreational customers are adequately served.»

Other licenses will be issued

In addition to approving extensions for the seven medical growers, the CRC also approved 34 conditional license applications for New Jersey growers and manufacturers who will be able to start work later this year. This brings to 102 the number of conditional licenses approved to date.

Recipients of these conditional licenses now have around four months to find a site, obtain local authorization to operate and apply for an annual license. Conditional licenses are a way for smaller companies to get into the game before annual licenses are granted to larger operators.

As of March 30, 2022, CRC had received 732 applications: 511 of these were from diversely-owned businesses (70 %), 213 from social equity businesses (29 %) and 310 from impact zone businesses (42 %), according to CRC. Of the 732 applications received, 410 have begun the priority review process.

Initiated in 2019 In its latest iteration, New Jersey's legalization of cannabis attempts to put reparation for the damage caused by the war on drugs front and center. Like their neighbors in New York and Massachusetts, New Jersey legislators are incorporating social equity into cannabis laws and licensing procedures from day one.