The rapidly developing Cannabis industry arising from laws permitting the use of medicinal cannabis, and, adult recreational use, brings with it a plethora of precedents yet to be set in the Garden State. This past April, the Cannabis Regulatory Commission met, kicking off the next steps in the long process of making legal cannabis sales a reality. Until the Commission adopts its rule and regulations, legal sales are on hold.
Brach Eichler receives numerous questions and inquiries regarding the current status of New Jersey cannabis sales, purchasing, consumption, and workplace regulations. To address your concerns, we have created Cannabis Laws in New Jersey – Frequently Asked Questions, a list of questions to keep you informed on the current state of affairs and policy developments in the cannabis industry.
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Selling Cannabis in New Jersey
In what way does the law differentiate marijuana and cannabis?
Despite the different names, there is no difference in substance as the two terms both describe parts of the plant Cannabis sativa L. However, the law creates a distinction between legal cannabis, which is part of the plant cultivated and produced for use in a cannabis item regulated by the Cannabis Regulatory Commission (CRC), and illegal marijuana, which is part of the same plant that has not been subject to CRC regulation. Cannabis may be legally manufactured and distributed, while marijuana may not.
What is the Cannabis Regulatory Commission (CRC)?
The CRC is the governing body overseeing the regulated medicinal and recreational cannabis industry.
What kind of licenses will the CRC issue?
Class 1: Cannabis Cultivator license
Class 2: Cannabis Manufacturer license
Class 3: Cannabis Wholesaler license
Class 4: Cannabis Distributor license
Class 5: Cannabis Retailer license (Class 5 Cannabis Retailers may apply for an endorsement from the State to operate consumption areas, such as “consumption lounges”)
Class 6: Cannabis Delivery license
What is a conditional license?
A conditional license is a provisional award that gives the conditional license-holder a limited time to convert into an annual cannabis business license by satisfying all of the remaining requirements for full licensure. Conditional licensees have 120 days before they need to apply to convert to an annual license.
What are the tax differences between adult-use recreational cannabis and medical marijuana?
Adult-Use Cannabis: Sales are subject to the standard state sales tax of 6.625%. In addition, Class 1 Cannabis Cultivators must charge a Social Equity Excise Fee (SEEF) of 1/3 of 1% of the average retail cost of an ounce of cannabis, and local municipalities may impose an optional 2% municipal transfer tax.
Medical Marijuana: Subject to 0% sales tax.
Buying and Possessing Cannabis
Can I buy cannabis in New Jersey?
Yes. New Jersey residents and visitors 21 years of age and older can purchase recreational cannabis and cannabis products at licensed dispensaries across the state.
Where can I legally purchase cannabis?
Cannabis products can be purchased at New Jersey’s licensed medical marijuana dispensaries and licensed cannabis retailers.
How much cannabis can I legally buy?
Registered Patients: Up to 3.0 oz of medical cannabis or cannabis products from a medical marijuana dispensary every 30 days, as directed by the authorizing healthcare provider (terminally ill patients are exempt from maximum limits).
Recreational Users: Up to 1 oz of dried flower, up to 4 grams of concentrates, resins, or oils, or up to ten 100 mg packages of ingestible items in a single transaction.
Are edibles available to buy?
Yes. Cannabis products are available as dried flower, concentrated oils, lozenges, other chewable forms, pills, tablets, capsules, drops, syrups, tinctures, topicals, transdermals, and sublinguals.
Food-based edibles must be “non-TCS food” or “shelf-stable food,” meaning food capable of being safely stored at room temperature in a sealed container without the need for time or temperature controls to prevent pathogen growth or toxin formation.
Is it legal to possess cannabis in New Jersey?
Yes. In November 2020, the state constitution was amended to legalize adult recreational cannabis use (effective January 1, 2021). The law removed criminal and civil penalties for possession of up to 6 oz by adults aged 21 and older.
How much cannabis can I legally possess?
Individual adults aged 21 and older may legally possess up to 6 oz of marijuana (including any adulterants or dilutants) or up to 17 grams of hashish.
What is hashish?
Hashish means the resin extracted from any part of the plant Cannabis sativa L. Under current statutes, marijuana and hashish remain classified as controlled dangerous substances but are largely decriminalized for non-distribution possession offenses (up to 17 grams of hashish).
Can I give cannabis as a gift?
Yes. You can gift up to 1 oz of cannabis to another adult who is 21 years of age or older.
Can I get cannabis delivered to me?
Yes. CRC-certified delivery drivers working for a licensed facility can deliver legal cannabis directly to consumers.
Can a municipality restrict cannabis delivery services in their jurisdiction?
A municipality may restrict local delivery service business locations, but in no case may a municipality prohibit the transportation or delivery of cannabis items through or within its borders. Any local ban on transport or customer deliveries is void and unenforceable under state law.
Can I buy cannabis out of state and bring it back into New Jersey?
No. Legally produced marijuana must remain within the state where it was cultivated and sold. Marijuana remains illegal under federal law; transporting cannabis across state borders or having it shipped interstate is illegal.
Can out-of-state residents buy cannabis in New Jersey and take it home?
No. Federal prohibition bans interstate transportation of cannabis. Products legally purchased in New Jersey must be consumed within New Jersey.
Can you drive with marijuana in your vehicle?
Driving under the influence of cannabis is strictly illegal. However, an individual may transport up to 6 oz of marijuana or 17 grams of hashish in a vehicle under standard possession limits, provided the driver or passengers are not consuming it while operating or occupying the vehicle.
Can police officers search my car based on the smell of cannabis?
No. The odor of cannabis—burnt or raw—by itself no longer constitutes reasonable suspicion to detain an individual under 21, nor does it establish probable cause to search a person, vehicle, or personal property.
Where can you smoke cannabis?
Consuming cannabis in public places is prohibited. Recreational cannabis may only be used in private residences or in state- and locally endorsed designated consumption areas.
Consumption areas include:
An indoor structurally enclosed area of a licensed retailer or medical dispensary that is physically separated from retail sales floors; or
An exterior structure on the same premises (attached or detached) where products purchased on site or brought by consumers may be consumed.
Up to 20% of guest rooms at hotels, motels, or lodging establishments, if expressly permitted by management.
Where is cannabis consumption prohibited?
Cannabis smoking, vaping, and aerosolizing are prohibited anywhere tobacco smoking is barred under the New Jersey Smoke-Free Air Act, including:
Workplaces
Public parks and public beaches
Outdoor passenger pickup and drop-off areas
Airports
Elementary and secondary school buildings and grounds (public or private)
Consumption may also be banned by property owners or governing bodies in:
Private multi-family housing complexes
Cooperative residential buildings
Condominium associations, if approved by the board and a majority of unit owners
Can I grow cannabis plants at home in New Jersey?
No. Personal home cultivation of medical marijuana and recreational cannabis is illegal in New Jersey. Cultivation requires a commercial CRC license.
What are the major differences between adult-use recreational cannabis and medical marijuana?
Criteria
Adult-Use Recreational
Medical Marijuana
Eligibility
21 years of age or older
Qualifying condition; physician certification and state registration required
Purchase Limit
Up to 1 oz per transaction
Up to 3 oz per 30-day period (exempt for terminal patients)
Sales Tax
6.625% state tax + up to 2% local tax + SEEF
0% state sales tax
Cannabis and Employment Law
Can an employer fire an employee for cannabis consumption?
Generally, no. Employers may not refuse to hire, discharge, or penalize an employee solely because they consume cannabis products off-duty. Under New Jersey law, the presence of cannabinoid metabolites in an individual’s system from lawful outside conduct cannot serve as the sole ground for adverse action.
Federal Exception: Employers may terminate or decline to hire individuals if permitting cannabis usage would violate the express terms of a federal contract or result in the forfeiture of federal funding.
Can an employer require an employee to undergo a drug test?
Yes. Employers may require drug screening under the following circumstances:
Reasonable suspicion of active impairment during work hours
Observable signs of impairment related to cannabis use
Following a work-related accident subject to investigation
Random drug testing programs
Pre-employment screening
Regular routine monitoring to ensure sobriety during prescribed work shifts
Workers with questions regarding their employer’s specific drug-testing policies should consult their human resources department or an employment attorney.
Rules and Penalties for Minors
What happens when an individual under 21 is caught possessing or consuming marijuana?
Individuals under 21 are no longer arrested, criminally charged, or subject to monetary fines for personal possession or consumption offenses. Instead, the law applies an escalating warning protocol:
First Offense: Written warning. Under S3565, law enforcement must provide written notification to parents or legal guardians for individuals under age 18.
Second Offense: Written warning accompanied by community drug treatment referral information. For minors under 18, parents or guardians receive copies of both the first and second warning notices.
Third or Subsequent Offense: Written warning and referral directly transmitted to a community drug treatment program (for young adults aged 18–20) or provided to parents/guardians (for minors under 18).
Fourth-Degree Threshold: Possession of more than 6 oz of marijuana or more than 17 grams of hashish by anyone under 21 remains a fourth-degree crime subject to a complaint summons and fingerprinting.
Can an individual under 21 be arrested for concealing marijuana or refusing to provide identification?
Officers are instructed to use reasonable efforts to de-escalate and explain the warning procedure if an underage person refuses identification. State law prohibits placing an underage individual under arrest or into custodial detention simply for pocketing cannabis, concealing it, or declining to hand it over. Custody is permitted only if the individual commits an independent affirmative act of unlawful interference with the officer.
