New Jersey Governor Phil Murphy has finally signed a law to implement a projected $1 billion recreational marijuana market in the state. The move came mere hours after lawmakers agreed on a "clean-up measure" that had held up the process for months. According to the new law, adult-use sales could begin before the end of 2021.
Gov. Murphy insisted that the bill include penalties for underage marijuana and alcohol use before he would sign the implementation measure, and also signed into law two other bills, one reforming criminal and civil penalties for marijuana offenses and one clarifying penalties for the use and possession of marijuana by individuals younger than 21 years old.
The state's legalization of recreational marijuana was approved on November 3rd and is expected to ignite similar legislation in New York, Pennsylvania, and across the Northeast and Mid-Atlantic.
A medical cannabis operator that is currently operating in the state can begin adult-use cannabis sales immediately after rules are issued if the company can prove it has sufficient supply to meet MMJ (medical marijuana) demand. Rules must be developed within 180 days, or within 45 days of 5 members of a Cannabis Regulatory Commission being appointed, if that comes later than the 180 days. The New Jersey law also includes giving prioritized licenses to microbusinesses owned by residents, and to applicants from economically hard-hit communities or those impacted by the war on drugs.
There are several key provisions to New Jersey's new recreational marijuana law, including caps on the numbers of cultivation and operation licenses, mandated diversity of license holders, state and municipal taxes, and excise fee and sales tax proceed allocation.
For more information on the legalization of cannabis across the country, check out the chart from FC&S, Marijuana Legalization by State 2021. To learn more about FC&S Expert Coverage Interpretation, visit our website. Sign up to receive our weekly newsletter, FC&S Coverage Insider, to stay up-to-date on insurance coverage issues. Discover our resources on commercial lines and personal lines on the NU Resource Center.