The New Jersey Law Journal published an article by Joshua S. Bauchner and Natalie C. Diaz from our Cannabis, Hemp, and Psychedelics practice group titled, “Navigating Local Hurdles: Challenges Facing Cannabis Applicants in New Jersey“ where they explain the intricate landscape of cannabis regulation within the state.
Joshua and Natalie mention that New Jersey’s evolving cannabis regulations poses substantial challenges for businesses, primarily due to municipalities’ broad authority under CREAMMA, the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act. CREAMMA grants municipalities significant regulatory control over cannabis establishments, allowing them to enact ordinances that dictate the location, manner, and operational hours of these businesses. This localized control often creates hurdles for cannabis applicants, particularly those involved in “social equity” programs aimed at supporting economically disadvantaged individuals or those with eligible marijuana-related convictions.
Municipal Regulations and Challenges for Cannabis Businesses
Out of New Jersey’s 564 municipalities, 208 have opted into the recreational cannabis market, each enforcing unique local ordinances that regulate operational aspects of cannabis businesses. These include restrictions on operational hours, location, and density requirements, making it imperative for applicants to secure local support through resolutions and zoning determinations. The varied local regulations can pose significant challenges, especially with the high costs and stringent requirements associated with obtaining the necessary approvals.
Challenging Municipal Authority
Challenging municipal decisions can be daunting due to the presumption of validity these actions carry. Courts can overturn such decisions only if deemed “arbitrary, capricious, or unreasonable.” This presumption makes it difficult for cannabis applicants to contest unfavorable municipal ordinances, as demonstrated in recent cases like Big Smoke v. Twp. Of West Milford and In re. Application for Med. Marijuana Alt. Treatment Ctr. for Pangaea Health & Wellness. These cases highlight the complexities and high burden of proof required to challenge municipal actions successfully.
The Road Ahead
As New Jersey’s cannabis industry continues to evolve, striking a balance between local regulatory control and equitable market access remains crucial. Applicants, especially those from “social equity” backgrounds, face significant challenges due to financial constraints and stringent local regulations. The article by Joshua S. Bauchner and Natalie C. Diaz provides a comprehensive overview of these challenges and offers valuable insights into navigating the complex regulatory environment.
Read the full article by the New Jersey Law Journal, here.
NJ Cannabis Regulations: Local Control and Social Equity Challenges
