New Jersey Bill Would Expand Dispensary Access, Loosen CRC Restrictions, and Strengthen Enforcement Against Illegal Operators

Filed this week and referred to the Senate Budget and Appropriations Committee, the measure proposes changes affecting the Cannabis Regulatory Commission (CRC), medical dispensaries seeking adult-use licenses, ethics rules, and enforcement against unlicensed sellers. The legislation would remove several long-standing restrictions placed on CRC commissioners. Under current law, commissioners are expected to devote their full time to the agency and are limited in political activity. The bill clarifies that commissioners who also hold local elected office may actively campaign and fundraise during their election year, consistent with existing ethics approvals. It would also allow commissioners, the executive director, and other CRC staff to attend political events in an official capacity after giving written notice to the chair.

The proposal further eliminates a rule barring CRC members and employees from discussing pending or proposed applications outside the agency’s premises. Under the bill, those meetings could take place either at CRC offices or any location designated by the commission.

Compensation for the agency’s leadership would also increase. Member salaries would rise to $160,000, while both the chair and the executive director would earn $165,000. Another notable shift gives CRC members—rather than the governor—the authority to choose the commission’s chair.

Ethics rules around ownership would be loosened as well. Immediate family members of state officials could hold interests in medical or adult-use cannabis businesses if the appropriate ethics body determines the arrangement does not create a conflict of interest or the appearance of one.

For the cannabis industry, the most consequential changes may be those affecting medical operators applying for adult-use licenses. The bill clarifies that medical dispensaries seeking to operate as Class 5 retailers on the same premises would not need municipal approval, even in cities that have banned adult-use sales, so long as medical sales are allowed. Municipalities would also be barred from blocking adult-use sales by medical dispensaries that have operated without violations for at least 180 days. Any medical dispensary active as of CREAMMA’s effective date would be exempt from local caps on the number or location of cannabis retailers.

The measure also directs the New Jersey State Police to establish and run a statewide program targeting unlicensed cannabis businesses. Law enforcement would be empowered to investigate, shut down, and seize products from illegal sellers, with cases eligible for criminal prosecution. Unlicensed operators could also be treated as public nuisances under state or municipal law.

With such a broad scope, the bill represents one of the most substantial proposed updates to New Jersey’s cannabis system since the launch of adult-use sales. The Budget and Appropriations Committee will review the measure next, including its regulatory, fiscal, and enforcement implications.