New Jersey & New York Make Final Push to Open Adult-Use Cannabis Markets
By: Matthew Lewis & Morgan Davis
Two of the most anticipated global cannabis markets are poised to come online in the coming months. In this post, we discuss how far along New Jersey and New York regulators are in opening their respective adult-use markets and what industry stakeholders can expect along the way.
On November 5, 2020, New Jersey passed Public Question No. 1, a ballot measure that effectively amended the New Jersey Constitution to legalize marijuana. Regulators were given a long runway to develop the rules and procedures that are necessary to oversee the market’s opening and management; however, that original deadline of February 22, 2022, has now passed.
It is now anticipated that the state’s Cannabis Regulatory Commission (CRC) will initiate a “soft opening” of the state’s market at its upcoming meeting on March 24, 2022 – where several companies already holding medical cannabis licenses are expected to be given the first green light to sell recreational products. But industry experts anticipate we won’t actually see these products on shelves until early May. It is worth noting that Gov. Phil Murphy has recently stated that he anticipates $4 million in tax revenue from cannabis sales before the state’s fiscal year closes on June 30, 2022.
New Jersey certainly still has some obstacles to overcome before we see a free-flowing recreational market (e.g., social equity applications, staffing issues at the CRC, vetting the hundreds of applications previously submitted), but the ball is rolling and this timeline absolutely continues to put pressure on New York to keep pace.
As opposed to the progress being made across the river, New York still appears to have a ways to go before recreational products hit the shelves. That’s not to say that the state’s Cannabis Control Board (CCB) is not aggressively trying to shorten its runway. Just this week it was announced that the state is expected to grant its first recreational licenses to those applicants who have been adversely affected by the state’s previous efforts to criminalize cannabis possession. Qualified applicants must have been convicted of a cannabis-related offense prior to the state’s legalization date of March 31, 2021.
Ever since legalization passed, the Empire State has been lauded by industry stakeholders for its dedicated efforts to ensure social equity considerations are implemented in the regulation of its recreational market and this is another big step in making those promises become a reality. Chris Alexander, the Executive Director of the state’s Office of Cannabis Management, believes there will be upward of 200 of these types of licenses granted. Sales are expected to begin by the end of 2022. Until these applications are vetted and licenses are doled out, big cannabis operators are going to have to continue to wait before they can enter the New York market.
And that’s where we are. New Jersey is working to equip current medical license holders to get to a place where they can sell recreational products in the coming months, while New York is rolling out an unparalleled social equity program that will be its first step in granting adult-use licenses.
Both states are strong reminders that creating new regulatory schemes that can effectively oversee a new, burgeoning industry is a tall order. The last thing this industry needs is for these two massive markets to roll out regulations that are neither practical nor efficient. While some may be frustrated at what appears to be a snail’s-like pace, taking the time to get it right the first time continues to be the most prudent approach.