NJ Clears Way For Weed Lounges, Cannabis Consumption Areas

NEW JERSEY — It’s not just about having a place to toke a joint and relax – it’s about providing equitable access and creating a community. That’s what the New Jersey Cannabis Regulatory Commission (NJCRC) had to say on Friday as it released its long-awaited guidelines for “consumption areas” such as weed lounges.

The rules will take effect upon approval by the New Jersey Office of Administrative Law. When they do, licensed Garden State dispensaries will be able to create cannabis consumption spaces – if they follow some strict guidelines.

The rules include:

TOWN/CITY APPROVAL – Dispensary operators will need municipal approval for a consumption area in order to get an endorsement from the NJCRC.

ONE LOUNGE PER COMPANY – A cannabis consumption area must be attached to a dispensary, and operators will be limited to a single consumption area, regardless of the number of dispensaries they own.

VENTILATION – Consumption spaces must have HVAC systems robust enough to ensure proper ventilation and prevent smoke or vapors from affecting neighbors.

FOOD, DRINKS, TOBACCO – The sale of food, alcohol, tobacco, or nicotine products will be strictly prohibited, though patrons will be allowed to bring in or order food and non-alcoholic beverages.”

MEDICAL VS. RECREATIONAL USE – Registered medicinal marijuana patients must be allowed to bring in cannabis items from other licensed retailers for their own use in the consumption areas. Recreational-use customers may bring in personal use cannabis items if authorized by the retailer.

FEES – Fees associated with consumption area endorsements are $1,000 for the initial or renewal fee for a microbusiness, and $5,000 for the initial or renewal fee for a standard consumption area. Endorsements through the NJ-CRC are valid for one year and must be renewed annually.

OPERATING A LOUNGE – Businesses will have flexibility in their operational decisions, like particular hours of operation, fees to enter a consumption area, priority access to medicinal patients, and authorizing paid events. However, all businesses must adhere to any restrictions imposed by the municipality they’re located in, including restricting the number of consumption areas allowed in their town, business signage and communication with municipal emergency services.

“Having space to consume cannabis is not just about recreation – it is also about providing equitable access and offering people a safe place to consume legal cannabis products,” said NJCRC chair Dianna Houenou said.

“This move holds particular significance for communities that are limited in where they can enjoy cannabis – most notably, renters who cannot consume cannabis at home, unlike homeowners who enjoy greater freedom within their own homes,” Houenou said.

• See Related: NJ Weed Businesses Don't Hurt Home Values – And May Even Help, Study Says
• See Related: Wu-Tang Clan's Raekwon Plans To Open Cannabis Lounge In NJ

NJCRC executive director Jeff Brown said that legal marijuana is well on its way to being a billion-dollar industry in the Garden State.

“Consumption areas will likely bolster that – fostering a communal experience for those 21 and older around cannabis in a regulated and secure space,” Brown said.

Watch a video of this week’s NJCRC meeting below, which includes the vote and discussion on the new rules.

Send news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.