New Jersey Cannabis Regulatory Commission Proposes Update Consumption Areas

It’s been a whirlwind year for New Jersey recreational cannabis, and a new proposal could push the industry even higher in 2023.

The New Jersey Cannabis Regulatory Commission (NJCRC) proposed updated rules for cannabis consumption areas across the state, and asked for public input on the proposal by March 18.

The updated proposal establishes qualifications, application processes, and operation instructions for cannabis retailers interested in providing consumption spaces on premises.

Proposed Rules on Locations, Sales

Licensing fees for microbusiness retailers wanting to add a consumption area would cost $1,000; standard retailers will be charged $5,000. These endorsements would be valid for a year and renewed annually.

The rules would allow for indoor or outdoor consumption spaces, but the locations must be approved by both the NJCRC and the local municipality.

Consumption Areas

Additionally, a cannabis business would only be eligible to run one cannabis consumption area, regardless of how many Class 5 Retailer licenses the businesses hold.

The proposed rules would prohibit on-location sales of food, tobacco, and alcohol within these consumption spaces, but consumers would be allowed to bring their own food in or order food for delivery to the consumption space.

Patrons of these establishments will need to be 21 years old.

Tax Exemptions

State Sens. Troy Singleton (D-7) and Shirley Turner (D-15) introduced legislation in an effort to support cannabis businesses by excluding certain corporate business taxes from a federal tax provision that prohibits deductions and credits for cannabis businesses.

“We have seen here in New Jersey, and around the country, that legal cannabis businesses tend to lack diversity both in gender and race amongst its ownership ranks. This proposal would aim to level the playing field for all cannabis businesses,” said Singleton.

“It would ensure that dispensaries are paying a fair amount of taxes by taking into account critical business expenditures and allowing these deductions from their income.”

Committee Passage

The bill, S-340, was recently moved forward by the Senate Budget and Appropriations Committee. 

“New Jersey’s cannabis industry is still in its infancy, and we need to act early to provide equal opportunity for all businesses to succeed,” said Turner. “Supporting dispensaries while promoting diversity within the cannabis industry is better for our local economy and also helps to ensure that the profits from recreational cannabis are being funneled back into the communities that need it most.”