So, “MarijuWANNA” start smoking weed? Not just yet NJ.

Although the votes are in and New Jersey voters passed the legalization of recreational marijuana, it will still be a while until it is actually legal. When implemented, legalization will be for those 21 years and older and will include a 6.625% state tax on any sale and “recreational” means up to one ounce for “personal” use. That is good news for a lot of people in New Jersey who want to smoke it – but growing and selling it remain open issues (i.e. where not sure how you’re going to get it). However, we cannot get ahead of ourselves with excitement. The legalization of weed via the 2020 ballot is only one step in the long process required to get recreational marijuana into the marketplace. 

There are several laws and regulations that will need to be put into place before any selling, buying or smoking of marijuana will be legal in New Jersey. Like other states that previously legalized marijuana, it could take 1-2 years to have a fully operational marijuana industry. However, once it gets going, the industry is expecting to create numerous jobs and generate around $126 million per year in annual tax revenue 

Before we go into further detail about what this could mean for your current or potential businesses, let consider a few basic questions:

Can I legally consume marijuana in NJ now?

Not yet! Passing the referendum was just the first step in making marijuana purchase and consumption legal for us in New Jersey. We will have to wait for further action and instructions from our state legislature and then likely implementation from an administrative agency. It is also important to note that marijuana remains illegal federally, so once we are further advised about state regulations, there is still a risk involved.

When will I be able to purchase legal weed at a dispensary in NJ?

It could be a while! In Massachusetts it took 2 years for dispensaries to be up and running after legalization. New Jersey seems to be on a similar path when it comes to timing, so don’t expect to see dispensaries popping up in the next few months.

I’m from out of state. Will I be allowed to take home weed from NJ? 

Technically, no. It is a federal crime to bring marijuana across state lines, However, crossing state lines to buy AND consume the product is legal. This is similar to sports betting, where you can be a citizen of New York that bets, but you must place your bets in New Jersey. 

I’m an aspiring small cannabis business, what does this mean for me?

This means you can set your sights on expanding into New Jersey. However, the process will not be simple and could take several months before you have any information on how you can begin selling in New Jersey. You’ll have to find help here, and we’re happy to point you in the right direction.

I’m looking to start a cannabis business in NJ, what should I do? 

Sit tight! New Jersey is a while off from creating the regulations that you will need to know in order to start your business. We know you want to get a jump start on business possibilities, but there are a lot of unknowns when it comes to the who, what and when of the NJ Cannabis industry. 

As far as starting legal marijuana businesses in NJ, that could take a while. From statements made by Gov. Murphy and other state legislators, it appears that their priorities lie in the social and criminal justice reforms that go hand in hand with this new law. The government will have to take first steps that include directing police to stop marijuana related stops and arrests. After these measures are taken the commission that will consist of 5 members will discuss how to regulate, test, and issue licenses for marijuana businesses. They will also discuss taxing growers, limiting the number of licenses that are issued, and how to regulate wholesalers.

Once these issues are ironed out, one issue that will still remain with the marijuana industry is financing for new businesses. Banks are still hesitant to lend money to marijuana start-ups due to federal laws that still deem marijuana illegal. Because of this, if you are considering starting a new marijuana oriented business, you should consider finding private equity loans or personal loans. Even if a loan is secured, “Dispensaries must go through a rigorous licensing process, and new growers will have to come to add to the state’s supply.” Applicants for these licenses will have to spend large amounts of money fighting for their license and may get beat out by larger companies that already have marijuana companies in other legal states. Because this process will be rigorous and lengthy, recreational marijuana will probably see its first sales in New Jersey from already established medical marijuana dispensaries. 

Lastly, there is the issue of protecting cannabis brands and logos. As we previously wrote in 2016 in our Great “Green” Rush article and in 2018 in our “A Green Wave of Trademark Applications?” article, the interest and activity around “cannabis” trademarks is still at an all-time “high.” Protecting intellectual property for cannabis companies is tricky because of the federal laws against marijuana, although it is easier now as a result of several changes. Federal Trademarks will not be allowed to be issued for Cannabis companies because of this. However, there are some ways around this. First, it is legal to have products containing CBD, so if your business also sells CBD products, those goods and services can be trademarked. Also, trademarking your brand using goods and services that are related to your company, but not Cannabis is an option. For example, apparel with your brand name can be trademarked, but this has to be done strategically and does not allow for as much protection as a trademark of your main goods. 

Moral of the story is: Recreational Marijuana could become a huge and profitable industry in New Jersey, but those hoping to get a piece of the pie need to hold tight and see how regulations get rolled out!