Article

NJ Wastes No Time Implementing New Adult-Use Cannabis Legislation

by Mike Goral, Ken Teasdale, Jeremy Sucharski
November 13, 2020

New Jersey is pushing in record time to implement a 216-page bill that will establish the complex regulatory framework needed to usher in adult-use cannabis in the Garden State. Legislation was introduced on Friday, November 6, just two days after the election, and legislative meetings were held on Monday, November 9. So much work was done leading up to the ballot referendum that law makers are confident that the new regulations will be passed as soon as November 15.

The proposed bill will limit sales to adults 21 and over. It will also give local governments the power to decide whether sales will be made in their jurisdiction. Delivery services will be available state-wide despite any local objections. New Jersey citizens will not be allowed to grow their own plants, unlike provisions in other states that have allowed such limited home-grown production.

Despite the swift action by the legislature, there are still some issues that remain to be resolved. Social equity proponents have objected to a lack of provisions that protect their interests. Medical cannabis retail establishments would be able to immediately sell cannabis to adults 21 and over at their current locations, giving them a significant advantage over any new competitors.

Taxes are another unsettled issue. Currently cannabis sales would only be subject to the state and local sales tax. However, additional taxes are expected to be imposed when the legislation is finalized in the coming days and weeks.

If you have any questions, reach out to our experts.

November 13, 2020

Stay In Touch

Sign up to stay up-to-date with the latest accounting regulations, best practices, industry news and technology insights to run your business.

Resources
Related News & Insights
A Simplified Deal: The Playbook for Your Next Transaction
Webinar
The only transaction readiness playbook you’ll need, no matter the deal.

November 9, 2021 | 12:00 PM - 03:00 PM PT
VIP Networking Event at Topgolf
Live Event
Swing by for an evening of conversation, cocktails and food with fellow Dallas nonprofit leaders.

November 4, 2021 | 03:30 PM - 06:30 PM PT
MISBO NightCap
Live Event
Connect with our private school team over conversation, cocktails and light hors d’oeuvres ⎯ it’s our treat!

October 28, 2021 | 06:30 PM - 09:00 PM PT