In late 2024, New Jersey lawmakers advanced a cannabis reform bill aimed at strengthening enforcement against unlicensed cannabis activity while also revising key regulatory and ethics rules affecting licensed operators, applicants, and investors.
A central feature of the bill is an expanded focus on illicit market enforcement and represents a definite move away from allowing “home grow” in New Jersey. The legislation would direct the New Jersey State Police, working with the Cannabis Regulatory Commission and local law enforcement, to develop and implement a structured enforcement program to identify, investigate, and pursue coordinated actions against unlicensed cannabis manufacturing and sales.
The amendments further remove a provision that would have allowed existing medical cannabis dispensaries to conduct adult-use retail sales from their current premises without municipal approval, meaning municipal approvals remain required.
The bill also clarifies that “ownership interest” applies only to present ownership rights, not future rights, which may affect certain transaction structures. It expands diversity certification rules by allowing investor groups or funds to be included in qualifying a retail cannabis business as minority-owned, women’s-owned, or disabled-veterans owned, and provides that once certification is obtained it would survive a default or failure by the individuals originally associated with it.
Finally, the bill imposes campaign finance restrictions involving CRC members seeking local office, prohibiting those members from accepting donations from cannabis owners and prohibiting cannabis owners from donating to those campaigns.
As the legislation continues through the process, cannabis businesses should monitor its progress and consider whether compliance, governance, workplace policies, and ownership structures may need to be updated if enacted. If you have any questions regarding the above, please contact Justin Calta or Michael Grohs of Saiber LLC’s cannabis law practice.
Justin Calta’s practice focuses on the representation of businesses and individuals in real estate and corporate transactions, with a particular emphasis on zoning, land use and re-development, commercial leasing, mergers and acquisitions, and general corporate law and business counseling.