2020 – Preparing for Cannabis in New Jersey – How can you prepare your cannabis business for the 2020 New Jersey Marijuana Referendum? As you know, there have been several failed attempts to pass a recreational marijuana law through legislation in New Jersey. Now, voters will finally get the chance to decide for themselves when they visit the polls in November of this year.
In December 2019, the New Jersey legislature approved a referendum to place the question of whether to legalize adult-use marijuana on the state’s 2020 general election ballot.
What the Ballot Question Will Look Like
This is how the question and interpretive statement will appear on the ballot:
Constitutional Amendment to Legalize Marijuana
- Do you approve amending the Constitution to legalize a controlled form of marijuana called “cannabis?”
- Only adults at least 21 years of age could use cannabis. The state commission created to oversee the state’s medical cannabis program would also oversee the new, personal use cannabis market.
- Cannabis products would be subject to the state sales tax. If authorized by the Legislature, a municipality may pass a local ordinance to charge a local tax on cannabis products.
Interpretive Statement
- This amendment would legalize a controlled form of marijuana called “cannabis.” Only persons at least 21 years of age could use cannabis products legally.
- The Cannabis Regulatory Commission would oversee the new adult cannabis market. This commission was created in 2019 to oversee the state’s medical cannabis program. The scope of the commission’s new authority would be detailed in laws enacted by the Legislature.
- All retail sales of cannabis products in the new adult cannabis market would be subject to the state’s sales tax. If authorized by the Legislature, a municipality may pass a local ordinance to charge a local tax on cannabis products.
If the Measure Passes?
Then New Jersey will become the 12th state to legalize marijuana. This would take effect on January 1, 2021. However, further legislation and regulation will have to take place by the legislature and respective administrative bodies. Many of those details – including how the state would implement the measure – have not quite been finalized yet.
Start Preparing Now
That being said, it’s wise for businesses who wish to get in on New Jersey’s recreational market to start preparing now for legalization. There will be four different classes of licenses:
- Grower license
- Processor license for facilities involved in manufacturing, preparation, and packaging of cannabis items
- Wholesaler license
- Retailer license whereby consumers can buy cannabis products
Previous versions of the legislation have included Marijuana Consumption Areas (which are essentially lounges for on-site consumption). It looks like licenses will be capped at a fixed amount. After that, the Cannabis Regulatory Commission will determine the maximum number of licenses for each class based on market demand.
Keep in mind, the licensing process will be rigorous for those obtaining a medical marijuana license for an Alternative Treatment Center (“ATC”), and the expectation for adult-use licenses will be no different.
Polls show that most Americans are in favor of marijuana legalization; New Jersey residents in particular favor it by 62 percent, says a recent Monmouth University poll. Businesses and entrepreneurs who want to get a jump on the application process should begin putting a team of professionals in place now in order to sufficiently prepare for the application process.
You’ll have to consider:
- Business Formation and Governance
- Zoning and Land Use Issues
- Financial/Tax Planning
- Branding and Intellectual Property Issues
The key is to be prepared and to do all the research you can so if and when this measure is approved, you can hit the ground running.
Contact Buyweed
Buyweed is here to keep you informed about cannabis legalization in New Jersey and throughout the country. Want to know more? Contact us today.