New Jersey’s new marijuana industry comes with a social twist: cannabis consumption areas. Licensed cannabis retailers will have the opportunity to open and operate a New Jersey social lounge consumption space where medical cannabis patients and adults aged 21 and up would be permitted to consume cannabis on the same premises as the retail location. These “cannabis consumption areas” (or CCAs) would act similar to a hookah or cigar lounge where patrons can bring their own cannabis or purchase cannabis from the retailer and consume it on the premises.
To operate a CCA, a business must possess a retail license or medical cannabis dispensary license — standalone CCAs will not be permitted. Before a CCA can open, the local municipality where the CCA chooses to operate must adopt an ordinance that would approve the operation of a CCA. The local municipalities or townships can approve CCAs for adult-recreational use, medical use, or adult-recreational use and medical use of cannabis within their jurisdiction. Additionally, the local municipality and the Cannabis Regulatory commission must authorize the CCA to operate within the space of its retail or dispensary operation. Finally, a CCA would not be allowed to operate without an endorsement from both the local municipality and the State’s regulatory agency. Endorsements from the State and local municipality will be valid for one year, and yearly CCA renewals should be submitted in conjunction with renewals for cannabis retail licenses or medical cannabis dispensary license renewals to maintain operations.
CCAs will be permitted to operate indoors in an enclosed area of the retail establishment or medical cannabis dispensary. These enclosed areas must be wholly separated from the retail or dispensing areas with solid walls or windows. In order for patrons to access the CCA, they must first enter the retail establishment or dispensary, then enter the CCA through a separate interior door. CCAs must comply with the same ventilation requirements that apply to cigar lounges to permit smoking and vaping indoors. Legislators do not want smoke, vapors, and odor from the lounge traveling into the retail establishment.
Alternatively, a medical cannabis dispensary or cannabis retailer may also choose to operate their CCA outdoors. An outdoor CCA can be physically connected or detached from the retail establishment or medical cannabis dispensary as long as it remains on the same licensed premises. One benefit of operating an outdoor CCA is that it is not required to be enclosed entirely. Instead, outdoor CCAs are only required to have sufficient walls, fences, or other barriers that will prevent outside pedestrians from viewing cannabis consumption from any sidewalk or non-motorists right-of-way. In addition, outdoor CCAs must take measures to prevent the migration, seepage, or recirculation of cannabis smoke, vapor, or other exhaled material into any indoor public place or workplace. Finally, to make matters more challenging, the State’s regulatory agency is permitted to require an outdoor CCA to incorporate any ventilation features it deems necessary and appropriate.
