In a recent meeting, the New Jersey Cannabis Regulatory Commission approved proposed rules that will allow for the operation of cannabis consumption areas in New Jersey, more commonly referred to as cannabis lounges.

As part of the approved rules, cannabis retailers seeking to operate a consumption lounge will require both NJ-CRC approval and municipal approval. Lounges may be indoors or outdoors but must be enclosed.

Lounges must also require guests to be 21+ years of age and cannot over-sell to its consumers. While no food sales will be allowed at lounges, consumers may bring food or have it delivered to the consumption area. Alcohol and tobacco consumption is prohibited.

Application fees will be $1,000 for all businesses, $1,000 for microbusinesses, and $5,000 for standard licensing for other businesses. According to the CRC, the proposed rules will appear in the New Jersey Register, then will be open for public comment for 60 days.  The rules will then need to be adopted and a Notice of Application Acceptance issued before existing medicinal and recreational cannabis dispensaries can apply to expand their facilities to allow onsite consumption.

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